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

Name: Betty DeRose, Inc operates two departments, the handling de
Brand: StudyZin
Rating: 4.5 (876 reviews)

Free

90.2K

Verified Solution

Question

Accounting

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 total cost of the handling department's work in processinventory at April 30 using the FIFO process costing method.

Answer & Explanation Solved by verified expert

4.5 Ratings (876 Votes)

All working forms part of the answer
Requirement: Ending WIP Inventory Cost
Answer

*Costs of Ending WIP:*	EUP	Cost per EUP	Total Cost
- Direct Materials	36,080	$ 2.30	$ 82,984.00
- Conversion	20,680	$ 3.75	$ 77,550.00
Total cost of ending WIP				$ 160,534.00 = Answer

Workings

EUP - FIFO Method	Units	% Material	EUP Materials	% Conversion	EUP - Conversion
Units of ENDING WIP	44,000	82%	36,080	47%	20,680
Units STARTED & COMPLETED	36,000	100%	36,000	100%	36,000
Units of beginning WIP	18,000	62%	11,160	29%	5,220
Equivalent Units of Production			83,240		61,900

COST per EUP			Material		Conversion
Cost incurred this period			$ 191,452.00		$ 232,125.00
Total Costs		Costs	$ 191,452.00	Costs	$ 232,125.00
Equivalent units of production		EUP	83,240	EUP	61,900
Cost per EUP			$ 2.30		$ 3.75

Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:

Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!

Become a Member