Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. carmelita inc. has the following information avail

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

Free

70.2K

Verified Solution

Question

Accounting

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

Answer & Explanation Solved by verified expert
4.4 Ratings (684 Votes)

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
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Transcribed Image Text

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

Other questions asked by students