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 direct material unit cost using the weighted average process
costing method.

Answer 1

ANSWER;

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.

the direct material unit cost using the weighted average process costing method.

Unit completed and transferred out = 18000+80000-44000 = 54000 Units

Equivalent unit of material = (18000*62%+36000*100%+44000*82%) = 83240

Equivalent unit of conversion = (18000*29%+36000*100%+44000*47%) = 61900

Cost per equivalent unit of material = 191452/83240 = 2.3

Cost per equivalent unit of conversion = 232125/61900 = 3.75

Cost of goods completed and transferred out = (47160*2.3+41220*3.75)+204241 = $467284

Cost of goods completed and transferred out during April:

	Units	% Materials	EUP-Materials	% Conversion	EUP-Conversion
Units completed and transferred out	54000	100%	54000	100%	54000
Ending work in process	44000	82%	36080	47%	20680
Total units	98000		90080		74680
Cost per equivalent unit of production:			Materials		Conversion
Cost of beginning work in process			51764		152477
Costs added during April			191452		232125
Total costs $			243216		384602
÷ Equivalent units of production			90080		74680
Cost per equivalent unit of production $			2.70		5.15

Cost of units completed and transferred out:	EUP	Cost per EUP	Total Cost
Direct materials	54000	2.70	145800
Conversion	54000	5.15	278100
Total costs transferred out $			423900