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

Soltuion:

	Units	% material	EUP-Materials	% Conversion	EUP- Conversion
Units Completed and transferred out (600+4000-1200)	46000	100%	46000	100%	46000
units of Ending work in process	32000	70%	22400	45%	14400
Equivalent units of production			68400		60400

Cost per Equivalent unit:	Material	Conversion
Cost of Beginning Work in Process	$20,340	$1,68,690
Cost added	$3,07,980	$3,32,630
Total Costs	$3,28,320	$5,01,320
/Equivalent units of Production	68400	60400
Cost per Equivalent unit of Production	$4.80	$8.30

Cost of ending work in process	EUP	Cost per EUP	Total Cost
Material	22400	$4.80	$1,07,520
Conversion	14400	$8.30	$1,19,520
Total Ending work in process at April 30			$2,27,040