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 % complete conversion 25% 60% work in process, April 1 units completed during April work in process, April 30 units 27,000 46,000 32,000 70% 45% The cost of beginning work in process and the costs added during April were as follows: work in process, April 1 costs incurred during April total costs DM $ 20,340 307,980 328,320 Conversion $168, 690 332,630 501,320 Total cost $189,030 640,610 829,640 Calculate the total cost of the 27,000 units in beginning work in process using the FIFO process costing method.

Answer 1

Total cost of the 27,000 units in beginning work in process

378300

Workings:
	DM	Conversion
To complete work in process, April 1
27000*(1-60%)	10800
27000*(1-25%)		20250
Units started and completed	19000	19000	=46000-27000
Work in process, April 30
32000*70%	22400
32000*45%		14400
Equivalent units	52200	53650
	DM	Conversion
Costs incurred during April	307980	332630
/ Equivalent units	52200	53650
Cost per Equivalent unit	5.90	6.20
	DM	Conversion	Total
To complete work in process, April 1	10800	20250
X Cost per Equivalent unit	5.90	6.20
Cost to complete work in process, April 1	63720	125550	189270
Work in process, April 1	189030
Cost to complete work in process, April 1	189270
Total cost of the 27,000 units in beginning work in process	378300