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

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Accounting

Betty DeRose, Inc. operates two departments, the handlingdepartment and the packaging department. During April, the handlingdepartment reported the following information: % complete %complete units DM conversion work in process, April 1 18,000 38%71% units started during April 80,000 work in process, April 3044,000 82% 47% The cost of beginning work in process and the costsadded during April were as follows: DM Conversion Total cost workin process, April 1 $ 51,764 $152,477 $204,241 costs added duringApril 191,452 232,125 423,577 total costs 243,216 384,602 627,818Calculate the total cost of the handling department's work inprocess inventory at April 30 using the FIFO process costingmethod.

Answer & Explanation Solved by verified expert
4.5 Ratings (993 Votes)

  • All working forms part of the answer
  • Requirement: Ending WIP Inventory Cost by FIFO Method
  • 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

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