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 17,000 46% 77% units completed during April 46,000 work in process, April 30 23,000 29% 14% 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 $121,279 $203,056 $324,335 costs added during April 363,285 227,619 590,904 total costs 484,564 430,675 915,239 Calculate the total cost of the handling department's work in process inventory at April 30 using the FIFO process costing method.

Answer 1

• Requirement
  Cost of ending WIP = $ 74,313 Answer

Costs of Ending WIP:	EUP	Cost per EUP	Total Cost
- Direct Materials	6,670	$                              8.10	$          54,027.00
- Conversion	3,220	$                              6.30	$          20,286.00
Total cost of ending WIP				$               74,313.00

--Workings

EUP - FIFO Method	Units	% Material	EUP Materials	% Conversion	EUP - Conversion
Units of ENDING WIP	23,000	29.0%	6,670	14.0%	3,220
Units STARTED & COMPLETED	29,000	100%	29,000	100%	29,000
Units of beginning WIP	17,000	54.00%	9,180	23.00%	3,910
Equivalent Units of Production			44,850		36,130
COST per EUP			Material		Conversion
Cost incurred this period			$       363,285.00		$                  227,619.00
Total Costs		Costs	$       363,285.00	Costs	$                  227,619.00
Equivalent units of production		EUP	44,850	EUP	36,130
Cost per EUP			$             8.10000		$                          6.3000