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

1.

Calculate Equivalent units:

2.

Calculate cost per equivalent units:

3.

Calculate the total cost of 16,400 units in beginning work in process:

Therefore, the total cost of beginning work in process for 16,400 units is $137,101