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        16,400        75%             66%
units started during April      56,000
work in process, April 30       47,600        82%             40%

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      $ 25,766       $ 90,794         $116,560
costs added during April       193,245        181,588          374,833
total costs                    219,011        272,382          491,393

Calculate the cost of goods that were started and completed in the month
of April using the FIFO process costing method.

Answer 1

			DM		Conversion
		Units	%	Cost	%	Cost		Total Cost
	Opening Work in Progress	16400	75%	25766	66%	90794		116560
	Units Started in Process	56000		193245		181588		374833
	Closing Work in Progress	47600	82%		40%			491393
		Units
	Opening Work in Progress	16400
	Units Started in Process	56000
	Total Units	72400
	Closing Work in Progress	47600
	Units Completed	24800
	From Opening WIP	16400
	Started & Completed Units	8400
	Calculation of Equivalent Units:
			Direct Material	Conversion Cost
	Units in Beginning WIP	A	16400	16400
	% of Completion of Opening WIP	B	75.00%	66.00%
	% of Completion of Opening WIP Completed in April	C=100%-B	25.00%	34.00%
	Equivalent Units in Beginning WIP	D=A*C	4100	5576
	Units Started and Completed	H	8400	8400
	Units in Closing WIP	E	47600	47600
	% of Completion of Closing WIP	F	82%	40%
	Equivalent Units in Closing WIP	G=E*F	39032	19040
	Total Equivalent Units	D+H+G	51532	33016
	Calculation of Cost PU during the Period:		Direct Material	Conversion Cost
	Cost incurred in April	A	193245	181588
	Total Equivalent Units	B	51532	33016
	Per Unit Cost	A/B	3.75	5.50
	Calculation of Cost of Goods started and completed during the month:
	Units Started and Completed	H	8400	8400
	Per Unit Cost	G	3.75	5.50
	Total Cost	H*G	31500	46200
	Total Cost		77700