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

Answer 1

solution: Equivalent units of production - FIFO Beginning inventory units started and completed=80000-44000 Ending inventory Equivalent units of service (production) Units % Material Ta Tb 18,000 62% 36,000 100% 44,000 28% EUP- Material % conversion EUP- conversion la*b Tc Ja*c 11,160 29% 5,220 36,000 100% 36,000 12,320 74% 32,560 59, 480 7 3,780 Cost per equivalent unit of production Costs incurred this period - Equivalent units of production Cost per equivalent unit of production (rounded to 2 decimals) Material 190336 59,480 EUP 3.20 EUP conversion 232,407 73,780 I 3.15 EUP Cost per EUP Total cost Units started and completed Material conversion cost of goods that were started and completed 36,000 36,000 3.20 3.15 115,200 113,400 228,600