Question

Betty DeRose, Inc. operates two departments, the handling department and the packaging department. During April, the handling department reported the following information: % complete DM % complete conversion 71% 38% work in process, April 1 units started during April work in process, April 30 units 18,000 80,000 44,000 28% 74% The cost of beginning work in process and the costs added during April were as follows: work in process, April 1 costs added during April total costs DM $ 64,996 190,336 255,332 Conversion $152,785 232,407 385,192 Total cost $217,781 422,743 640,524 Calculate the cost of goods that were started and completed in the month of April using the FIFO process costing method.

Answer 1

Answer

Cost of goods started and completed = $ 228,600

Calculations:

Statement of Equivalent Production
Input	Particulars	Output	Material		Conversion cost
			%	Units	%	Units
18,000	Opening Stock	18,000	62%	11,160	29%	5,220
80,000	Started and completed	36,000	100%	36,000	100%	36,000
	Closing stock	44,000	28%	12,320	74%	32,560
98,000	Total	98,000		59,480		73,780
	Costs:		$                190,336		$                             232,407
	Cost per unit		$                      3.20		$                                   3.15

Value of Started and completed
Material (36,000 * 3.2)	$ 115,200.00
Conversion cost (36,000 * 3.15)	$ 113,400.00
Total	$ 228,600.00

In case of any doubt, please comment.