A Inc., employs a process costing system. Direct materials are added at the begi

Question

A Inc., employs a process costing system. Direct materials are added at the beginning of the process. Here is the information about July's activities:
On July 1
Beginning inventories 850 units, 60% complete
Direct materials cost $5,000
Conversion Costs $4,000

During July
Number of units started 15,000
Direct materials added $155,000
Conversion costs added $83,520

On July 31
Ending Inventories 1,600 units, 40% complete

Using FIFO method, (A) the number of units started and completed in July was? (B) the number of equivalent units of conversion costs was? (C) the cost of goods completed and transferred out during July was?

For A - I came up with 14,250 but not sure if I am doing the process correctly - please advise.

Thank you in advance for your help!

Explanation / Answer

(A)units completed during the july=15000-850=14150

(B)the number of equivalent units of conversion costs was?
opening WIP=850*40%=340
completed=14150*100%=14150
closing=1600*40%=640
total equivalent units=340+14150+640=15130 units

(C) the cost of goods completed and transferred out during July was?
equivalent units for materials=0+14150+1600=15750
per unit cost=155000/15750=9.841per unit
conversion cost=83520/15130=5.520 per unit
total=9.841+5.520=15.361 per unit

opening current cost=0+(14150*5.520)=78108
completed during july=(14150*15.361)=217358
closing cost=(1600*9.841)+(640*5.520)=19279
total=78108+217358+19279=314745

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