Nader, Inc At the Beginning of the Period, There Were 500 Units

question 32

Multiple Choice

Nader, Inc., has the following information available: $\begin{array}{|l|l|l|}\hline & \begin{array}{l}\text { Costs firom Beginuing } \\\text { Inventory }\end{array} & \begin{array}{l}\text { Costs finm Current } \\\text { Period }\end{array} \\\hline \text { Direct materials } & \$ 2,300 & \$ 21,252 \\\hline \text { Conversion costs } & 6,200 & 150,536 \\\hline\end{array}$ 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.)
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The cost of completing a unit during the current period was

• A) $39.50.
• B) $35.60.
• C) $35.21.
• D) $35.79.

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Definitions:

Manufacturing

The process of converting raw materials, components, or parts into finished goods that meet a consumer's expectations or specifications.

Cotton Goods

Products, especially textiles, made from cotton, an important material in the global textile industry.

Luxury Goods

Expensive, non-essential items and services that convey a sense of status or enjoyment beyond basic needs.

Enfranchisement of Women

The process of granting women the right to vote and participate fully in political life, typically achieved through legislative changes.