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Carmelita Inc. has the following information available: Costs from Beginning Inventory Costs from Current Period Direct...

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Carmelita Inc. has the following information available: Costsfrom Beginning Inventory Costs from Current Period Direct materials$4,400 $22,700 Conversion costs 5,400 149,900 At the beginning ofthe period, there were 500 units in process that were 41% completeas to conversion costs and 100% complete as to direct materialscosts. During the period, 4,600 units were started and completed.Ending inventory contained 300 units that were 29% complete as toconversion costs and 100% complete as to materials costs. Thecompany uses the FIFO process cost method. The cost of completing aunit (rounded to the nearest cent) during the current periodwas

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Solution :

Carmelita Inc.
Computation of Equivalent unit (FIFO)
Particulars Physical units Material Conversion
Units to be accounted for:
Beginning WIP Inventory 500
Units started this period 4600
Total unit to be accounted for 5100
Units Accounted for:
Units completed and transferred out
From beginning inventory
Material - 0%
Conversion - 59%		 500 0 295
Started and completed currently 4300 4300 4300
Transferred to finished goods 4800 4300 4595
Units in ending WIP
Material - 100%
Conversion - 29%		 300 300 87
Total units accounted for 5100 4600 4682
Carmelita Inc.
Computation of Cost per Equivalent unit
Particulars Total cost Material Conversion
Current period cost $172,600.00 $22,700.00 $149,900.00
Equivalent units 4600 4682
Cost per equivalent unit $4.93 $32.02

Cost of completing a unit during the current period = $4.93 + $32.02 = $36.95 per unit
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Carmelita Inc. has the following information available: Costsfrom Beginning Inventory Costs from Current Period Direct materials$4,400 $22,700 Conversion costs 5,400 149,900 At the beginning ofthe period, there were 500 units in process that were 41% completeas to conversion costs and 100% complete as to direct materialscosts. During the period, 4,600 units were started and completed.Ending inventory contained 300 units that were 29% complete as toconversion costs and 100% complete as to materials costs. Thecompany uses the FIFO process cost method. The cost of completing aunit (rounded to the nearest cent) during the current periodwas

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