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 38% % complete conversion 71% 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.

what is the answer please clarify and write the answer i.e. this is the answer.

Answer 1

Equivalent Units :-

	Material	Conversion
Beginning Work in Process	(18000 * 62%) =11160	(18000 * 29%) =5220
Units started and completed	36000	36000
Ending Work in Process	(44000 * 28%) =12320	(44000 * 74%) =32560
Equivalent Units	59480	73780

Units started and completed = Units started during period – Ending work in process units

        = 80000 – 44000 = 36000 units

Cost per EUP :-

	Material	Conversion
Cost added during april (A)	$190336	$232407
Equivalent Units    (B)	59480	73780
Cost per EUP   (A/B)	$3.20	$3.15

Cost of Goods that were started and completed in the month of april = 36000 units * ($3.20 + $3.15)

                     = $228600 (This is the answer)