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 27,000 units in beginning
work in process using the FIFO process costing method.

Answer 1

UNITS TO ACCOUNT FOR:
Beginning Work in Process units			27,000
Add: Units Started in Process			51,000
Total Units to account for:			78,000
UNITS TO BE ACCOUNTED FOR:
Units completed from beginning WIP		27000
Units started and completed			19,000
Ending Work in Process			32,000
Total Units to be accounted for:		78,000
Equivalent Units:
			UNITS	Material Cost	Conversion
				% Completion	Units	% Completion	Units
Units completed from Beg.	27000	40%	10,800	75%	20,250
Units started and completed	19000	100%	19,000	100%	19,000
Ending Work in Process	32000	70%	22,400	45%	14,400
Total Equivalent units	78000		52,200		53,650
TOTAL COST TO ACCOUNT FOR:
				Material		Conversion
Cost incurred			3,07,980		3,32,630
Total Cost to account for:		3,07,980		3,32,630
Equivalent Units			52,200		53,650
Cost per Equivalent unit		5.9		6.2
TOTAL COST ACCOUNTED FOR:
Units completed from Beg. Wip (27000 units)
				Equivalent unit	Cost per EU	Total Cost
Cost of beginning WIP				189030
Material				10,800	5.9	63720
Conversion Cost			20,250	6.2	125550
Total cost to complete beginning WIP			378300
Answer is $ 378300