Question

Betty DeRose, Inc. operates two departments, the handling department and the packaging department. During April, the handling department reported the following information:

----------------------------------units % --------complete % ------complete conversion

work in process, April 1 --81,000 ------------38% ----------------71%

units started during April --80,000-----------------------------------------

work in process, April 30 -- 4,000----------- 82%---------------- 74%

The cost of beginning work in process and the costs added during April were as follows:

---------------------------------------DM------- Conversion

work in process, April 1--- $84,194----------- $171,994

costs added during April 1---- 83,696----------- 246,774

Calculate the cost of goods completed and transferred out during April using the weighted average process costing method.

Answer 1

	Total
Cost of goods completed and transferred out	575,473
Cost Reconciliation Report
Costs to be accounted for:
	Total	Material	Conversion
Costs in beginning inventory	256,188	84,194	171,994
Cost added during the year	330,470	83,696	246,774
Total cost to account for	586,658	167,890	418,768
	Total	Material	CC
Cost Accounted for
Units completed and transfer	575,473	164,454	411,019
Units in ending inventory	11,185	3,436	7,749
Total Cost Accounted for	586,658	167,890	418,768
Betty DeRose , Inc
Production Cost Report
Working Note 1:
	Actual Units
Calculation of Physical UNITS:
Units in beginning inventory	81,000
Units started during the period	80,000
Units to be accounted for	161,000
	Actual Units	Equivalent Units
		Material	Conversion
Units Completed and Transferred	157000	157000	157000
Units in ending inventory	4000	3280	2960
Total accounted for	161000	160280	159960
Working Note 2:
Costs to be accounted for:
	Total	Material	Conversion
Costs in beginning inventory	256,188	84,194	171,994
Cost added during the year	330,470	83,696	246,774
Total cost to account for	586,658	167,890	418,768
Equivalent Units from above		160280	159960
Cost per equivalent unit		1.05	2.62