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 18,000 38% 71% units started during April 80,000 work in process, April 30 44,000 82% 47% 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 $ 51,764 $152,477 $204,241 costs added during April 191,452 232,125 423,577 total costs 243,216 384,602 627,818 Calculate the total cost of the handling department's work in process inventory at April 30 using the FIFO process costing method.

Answer 1

• All working forms part of the answer
• Requirement: Ending WIP Inventory Cost by FIFO Method
• Answer

Costs of Ending WIP:	EUP	Cost per EUP	Total Cost
- Direct Materials	36,080	$                   2.30	$          82,984.00
- Conversion	20,680	$                   3.75	$          77,550.00
Total cost of ending WIP				$      160,534.00 = Answer

• Workings

EUP - FIFO Method	Units	% Material	EUP Materials	% Conversion	EUP - Conversion
Units of ENDING WIP	44,000	82%	36,080	47%	20,680
Units STARTED & COMPLETED	36,000	100%	36,000	100%	36,000
Units of beginning WIP	18,000	62%	11,160	29%	5,220
Equivalent Units of Production			83,240		61,900
COST per EUP			Material		Conversion
Cost incurred this period			$       191,452.00		$                  232,125.00
Total Costs		Costs	$       191,452.00	Costs	$                  232,125.00
Equivalent units of production		EUP	83,240	EUP	61,900
Cost per EUP			$             2.30		$                        3.75