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

Answer 1

Total cost of the 18,000 units in beginning work in process	269936
Workings:
	Direct materials
To complete Work in process, April 1	11160	=18000*(1-38%)
Units started and completed	36000	=80000-44000
Work in process, April 30	12320	=44000*28%
Equivalent units	59480
	Conversion
To complete Work in process, April 1	5220	=18000*(1-71%)
Units started and completed	36000	=80000-44000
Work in process, April 30	32560	=44000*74%
Equivalent units	73780
	Direct materials	Conversion
Costs added during April	190336	232407
Divide by Equivalent units	59480	73780
Cost per Equivalent unit	3.20	3.15
	Direct materials	Conversion	Total
To complete Work in process, April 1	11160	5220
X Cost per Equivalent unit	3.20	3.15
Cost to complete Work in process, April 1	35712	16443	52155
Cost of Work in process, April 1	217781
Cost to complete Work in process, April 1	52155
Total cost of the 18,000 units in beginning work in process	269936