Question

Carmelita Inc., has the following information available:

 

Costs fromBeginning Inventory

Costs fromcurrent Period

Direct materials

2,000

$ 22,252

Conversion costs

6,200

  150,536

 

At the beginning of the period, there were 500 units in processthat were 60% complete as to conversion costs and 100% complete asto direct materials costs. During the period, 4,500 units werestarted and completed. Ending inventory contained 340 units thatwere 30% complete as to conversion costs and 100% complete as tomaterials costs. Assume that the company uses the FIFO process costmethod. Round cost per unit figures to two cents, i.e., $2.22, whencalculating total costs.

The total costs that will be transferred into Finished Goods forunits started and completed were

a.$161,775

b.$162,855

c.$161,505

d.$156,960