Carmelita Inc has the following information available Costs

Carmelita Inc., has the following information available

: Costs from Beginning Inventory Costs from current Period Direct materials $4,700 $23,800 Conversion costs 5,100 140,400

At the beginning of the period, there were 500 units in process that were 43% complete as to conversion costs and 100% complete as to direct materials costs. During the period, 5,100 units were started and completed. Ending inventory contained 300 units that were 26% complete as to conversion costs and 100% complete as to materials costs. The company uses the FIFO process cost method. The cost of completing a unit during the current period was

$45.16

$30.11

$36.13

$25.70

Solution

UNITS TO ACCOUNT FOR: Whole units Beginning WIP 500 Units introduced during the period 5400 Total units to account for 5900 UNITS ACCOUNTED FOR: Equivalent Units Material Conversion Cost Beginning WIP completed during the period 500 0 285 Units introduced and completed 5100 5100 5100 Total units completed and transferred out 5600 5100 5385 Ending WIP 300 300 78 Total units accounted for 5900 5400 5463 Material Cost Conversion Cost Total Cost Costs added during the period 23800 140400 164200 Cost per equivalent unit 4.41 25.70 30.11 Answer: $30.11