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 total cost of the 16,400 units in beginning work in process
using the FIFO process costing method.

Answer 1

The Total cost of 16400 units in beginning work in process completed is $162603

Explanation: The production cost report is as follows:

UNITS TO ACCOUNT FOR:
Beginning Work in Process units				16,400
Add: Units Started in Process				56,000
Total Units to account for:				72,400
UNITS TO BE ACCOUNTED FOR:
Units completed from Beginning WIP				16400
Units started and completed				8,400
Ending Work in Process				47,600
Total Units to be accounted for:				72,400
Equivalent Units:
			Material Cost		Conversion
			% Completion	Units	% Completion	Units
Units completed from Beg. WIP			25%	4,100	34%	5,576
Units started and completed			100%	8,400	100%	8,400
Ending Work in Process			82%	39,032	40%	19,040
Total Equivalent units				51,532		33,016
TOTAL COST TO ACCOUNT FOR:
			Material		Conversion
Cost Added during May			193,245		181,588
Total Cost to account for:			193,245		181,588
Total Cost to account for:					374,833
COST PER EQUIVALENT UNIT:
			Material		Conversion
Total cost added during the year			193,245		181,588
Equivalent Units			51,532		33,016
Cost per Equivalent unit			3.75		5.5
TOTAL COST ACCOUNTED FOR:
Units Completed from Beginning WIP (16400 units)
			Equivalent unit	Cost per EU	Total Cost
Beginning Cost					116560
Material			4,100	3.75	15375
Conversion Cost			5,576	5.5	30668
Cost of units completed from Beg WIP					162603
Units started and Transferred out (8400 units)
			Equivalent unit	Cost per EU	Total Cost
Material			8,400	3.75	31500
Conversion Cost			8,400	5.5	46200
Total Cost of Units completed and transferred out:					77700
Ending Work in process (47600 units)
			Equivalent unit	Cost per EU	Total Cost
Material			39,032	3.75	146370
Conversison Cost			19,040	5.5	104720
Total cost of Ending Work in process:					251,090