Question

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

                                           % complete      % complete
                                units         DM           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          422,743
total costs                    255,332        385,192          640,524

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

Answer 1

calculation of Equivalent unit of production (FIFO METHOD)

Particular	material	conversion
Unit's completed and transferred out (NOTE BELOW)54000units
BEGINNING WORK IN PROCESS 18000	(18000×62%) 11160	(18000×29%) 5220
UNIT STARTED DURING THE MONTH (36000)	(36000×100%) 36000	(36000×100%) 36000
ENDING INVENTORY	(44000×28%) 12320	(44000×74%) 32560
Total equivalent units of production	59480	73780

NOTE:

UNIT'S COMPLETED AND TRANSFERRED OUT=BEGINNING INVENTORY+unit's started during the month- ending inventory

= 18000+80000-44000

= 54000units

calculation of cost per Equivalent unit

Particular	material	conversion
(a)cost added during the month	$190336	$232407
(b) equivalent units	59480	73780
Cost per equivalent unit (a/b)	$3.2	$3.15

calculation cost of goods completed and transferred out during the month(FIFO METHOD)

Particular	amount ($)
Beginning work in process	217781
UNIT completed and transferred out
Beginning work in process (11160×$3.2)+(5220×$3.15)	52155
Unit started during the month (36000×{$3.2+$3.15})	228600

Total cost of goods completed and transferred out= $52155+$228600=$280755

ALL THE BEST

PLEASE DO SUPPORT US

ANY DOUBT PLEASE COMMENT BELOW

THANK YOU