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

• Requirement: Cost of Goods that were started and completed:

Cost of Units started & completed this period:	EUP [See working below]	Cost per EUP [See working below]	Total Cost
- Direct Materials	8,400	$                              3.75	$          31,500.00
- Conversion	8,400	$                              5.50	$          46,200.00
Total costs started & Completed this period			$          77,700.00 = ANSWER

Answer = $ 77,700

• Related working for above:

Units Reconciliation
Units to account for:
Beginning WIP	16,400
Units started this period	56,000
Total Units to account for	72,400
Total Units accounted for:
Completed & Transferred out	24,800
Ending WIP	47,600
Total Units accounted for	72,400

EUP - FIFO Method	Units	% Material	EUP Materials	% Conversion	EUP - Conversion
Units of ENDING WIP	47,600	82%	39,032	40%	19,040
Units STARTED & COMPLETED	8,400 [24800 – 16400]	100%	8,400	100%	8,400
Units of beginning WIP	16,400	25%	4,100	34%	5,576
Equivalent Units of Production			51,532		33,016
COST per EUP			Material		Conversion
Cost incurred this period			$       193,245.00		$                  181,588.00
Total Costs		Costs	$       193,245.00	Costs	$                  181,588.00
Equivalent units of production		EUP	51,532	EUP	33,016
Cost per EUP			$             3.75		$                        5.50