Betty DeRose, Inc. operates two departments, the handling department and the packaging department. During April, the...

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Betty DeRose, Inc. operates two departments, the handling department andthe packaging department. During April, the handling department reportedthe following information:                      % complete   % complete                units     DM      conversion work in process, April 1    18,000    38%       71%units started during April   80,000work in process, April 30    44,000    82%       47%The cost of beginning work in process and the costs added during Aprilwere as follows:                 DM     Conversion    Total costwork in process, April 1   $ 51,764    $152,477     $204,241costs added during April    191,452    232,125     423,577total costs          243,216    384,602     627,818Calculate the conversion unit cost using the weighted average processcosting method.

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4.2 Ratings (779 Votes)

--Conversion Unit Cost = $ 5.15 per equivalent unit

--Working

EUP - Weighted Average Method	Units	% Material	EUP Materials	% Conversion	EUP - Conversion
Units TRANSFERRED	54,000 [18000 + 80000 - 44000]	100%	54,000	100%	54,000
Units of ENDING WIP	44,000	82%	36,080	47%	20,680

Equivalent Units of Production			90,080		74,680

COST per EUP			Material		Conversion
Cost of Beginning WIP			$ 51,764.00		$ 152,477.00
Cost incurred during the period			$ 191,452.00		$ 232,125.00
Total Costs		Costs	$ 243,216.00	Costs	$ 384,602.00
Equivalent units of production		EUP	90,080	EUP	74,680
Cost per EUP			$ 2.70		$ 5.15 = Answer

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