Nader Inc. has the following information available: Costs from Beginning Invento

ID: 2421989 • Letter: N

Question

Nader Inc. has the following information available: Costs from Beginning Inventory Costs from Current Period Direct materials $2,300 $ 21,252 Conversion costs 6,200 150,536 At the beginning of the period, there were 500 units in process that were 40 percent complete as to conversion costs and 100 percent complete as to direct materials costs. During the current period, 4,300 units were started and completed. Ending inventory contained 320 units that were 80 percent complete as to conversion costs and 100 percent complete as to direct materials costs. (Assume that the company uses the FIFO costing method.) The cost of completing a unit of Nader Inc. during the current period was

Explanation / Answer

BEGINNING INVENTORY

= 500 UNITS

2300

3720

+ CURRENT PERIOD INVENTORY

=4300UNITS

21252

150536

-ENDING INVENTORY

=320 UNITS

1581.50

8962.144

CURRENT PERIOD COMPLETING UNIT =

= 4480 UNITS

21970.5

145293.9

Total cost = 167264.40