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

Answer 1

Solution:

	Units	% material	EUP-Materials	% Conversion	EUP- Conversion
units in process, April 1	27000	40%	10800	75%	20250
Units started and completed during April (46000- 27000)	19000	100%	19000	100%	19000
Toal units completed and transferred out			29800		39250
Units in process, April 30	32000	70%	22400	45%	14400
Equivalent units of production			52200		53650

Cost per Equivalent unit:	Material	Conversion
Cost added during the month	307980	332630
/Equivalent units of Production	52200	53650
Cost per Equivalent unit of Production	5.90	6.20

Total Cost of started and completed units	EUP	Cost per EUP	Total
Materials	19000	5.90	112100
Conversion	19000	6.20	117800
Total costs of started and completed units			229900