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 completed and transferred out
during April using the weighted average process costing
method.

Answer 1

1) compute Equivalent units of production under weighted average method

Particular	material	conversion
Units completed and transferred out(note below)	(41000×100%) 41000	(41000×100%) 41000
Ending inventory	(32000×70%) 22400	(32000×45%) 14400
Total Equivalent unit	63400	55400

Note : units completed and transferred out = beginning inventory+ units during the month - ending inventory

= 27000+46000 - 32000 = 41000 units

2) cost per Equivalent unit

Particular	material	conversion
a) cost of Beginning inventory	$20340	$168690
b) cost added during the month	$307980	$332630
c) total cost (a+b)	$328320	$501320
d) Equivalent unit	63400	55400
Cost per Equivalent unit (c/d)	$5.18	$9.05

​​​​​​3) cost of goods completed and transferred out

material = 41000× $5.18 = $212380

conversion = 41000× $9.05 = $371050

total cost of goods completed and transferred out

= $212380+$371050= $583430

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