Question

Betty DeRose, Inc. operates two departments, the handling department and the packaging department. During April, the handling department reported the following information:

	Units	% complete DM	% complete conversion
work in process, April 1	18,000	38%	71%
units started during April	80,000
work in process, April 30	44,000	28%	74%

The cost of beginning work in process and the costs added during April were as follows:

	DM	Conversion	Total Cost
work in process, April 1	$64,996	$152,785	$217,781
costs added during April	190,336	232,407	442,743
total costs	255,332	385,192	640,524

A. Calculate the direct material unit cost using the weighted average process costing method.

B. Calculate the equivalent units with respect to conversion costs using the weighted average process costing method.

C. Calculate the cost of goods completed and transferred out during April using the weighted average process costing method.

D. Calculate the total cost of the handling department's work in process inventory at April 30 using the weighted average process costing method.

E. Calculate the total cost of the 18,000 units in beginning work in process using the FIFO process costing method.

F. Calculate the cost of goods that were started and completed in the month of April using the FIFO process costing method.

G. Calculate the cost of goods completed and transferred out during April using the FIFO process costing method.

H. Calculate the total cost of the handling department's work in process inventory at April 30 using the FIFO process costing method.

Answer 1

The answer has been presented in the supporting sheet. For detailed answer refer to the supporting sheet. For detailed answer refer to the supporting sheet.

Answer Parta) Firstly we have to calculate the units transferred out = beginning inventory + unit started - units in ending inventory = 18000+80000-44000 = 54000 Direct Material Cost Per Unit (under weighted average) = Total direct material cost including cost in beginning inventory/ equivalent units of direct material = 255332/(54000+(44000*28%)) = $ 3.85 Thus the final answer is direct material cost per unit = $ 3.85 Part B) Conversion Cost Per Unit (under weighted average) = Total conversion cost including cost in beginning inventory/ equivalent units of Conversion cost = 385192/(54000+(44000*74%) = $ 4.45 Thus the final answer is conversion cost per unit = $ 4.45

3 Part ) 24 Cost of goods completed and transferred (under weighted average cost) -5 = No. of unit transferred * (direct material cost per unit + conversion cost per unit) -6 = 54000 * (3.85+4.45) -7 = $ 448200 -9 Thus the correct answer is $ 448200 1 Part d) 2 Ending work in process cost under weighted average 3 = (equivalent units of direct material * cost per unit of direct material)+(equivalent unit of converison cost * cost per unit of conversion cost) 4 = ((44000*28%)*3.85)+((44000*74%) *4.45) 5 = 47432+144892 6 = $ 192324 8 Thus the correct answer is $ 192324 -0 As per HomeworkLib policy we are required to solve the first 4 parts only, For remaining parts you have to post separate question. 21 Thank You -2