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          27,000        60%            25%
units completed during April      46,000
work in process, April 30         32,000        70%            45%

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        $ 20,340     $168,690       $189,030
costs incurred during April      307,980      332,630        640,610
total costs                      328,320      501,320        829,640

Calculate the total cost of the handling department's work
in process inventory at April 30 using the weighted average
process costing method.

Answer 1

Equivalent units of production

	Physical units	% Direct materials	Direct materials	% Conversion	Conversion
Units completed	46,000	100%	46,000	100%	46,000
Work in process ending	32,000	70%	22,400	45%	14,400
Equivalent units of production	78,000		68,400		60,400

Cost per equivalent unit

	Direct materials	Conversion
Work in process, beginning	$20,340	$168,690
Cost incurred during april	$307,980	$332,630
Total cost	$328,320	$501,320
÷ Equivalent units of production	68,400	60,400
Cost per equivalent unit	$4.8	$8.3

Cost of the handling department work in process inventory at April 30

Direct materials (22,400×$4.8) =$107,520

Conversion (14,400×$8.3) =$119,520

Work in process, April 30 =$227,040

______×______