Use this information about Carmelita Inc. to answer the questions that follow.

Carmelita Inc. has the following information available:

\begin{array} { | l | r | r | } \hline & \text { Costs from Beginning Inventory } & \text { Costs from Current Period } \\\hline \text { Direct materials } & \$ 2,000 & \$ 22,252 \\\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 60% complete as to conversion costs and 100% complete as to direct materials costs. During the period, 4,500 units were started and completed. Ending inventory contained 340 units that were 30% complete as to conversion costs and 100% complete as to materials costs. The company uses the FIFO process cost method.?The equivalent units of production for direct materials and conversion costs, respectively, were
A) 5,340 for direct materials and 4,902 for conversion costs
B) 4,840 for direct materials and 4,802 for conversion costs
C) 4,602 for direct materials and 4,802 for conversion costs
D) 4,902 for direct materials and 4,802 for conversion costs

Department M Had 2,000 Units 40% Completed in Process at the Beginning

Multiple Choice

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