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        18,000        38%             71%
units started during April      80,000
work in process, April 30       44,000        28%             74%

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      $ 64,996       $152,785         $217,781
costs added during April       190,336        232,407          422,743
total costs                    255,332        385,192          640,524

Calculate the total cost of the handling department's work in process
inventory at April 30 using the weighted average process costing method.

Answer 1

Answer is given below with working notes

$192,324 total cost of the handling department's work in process inventory at April 30 using the weighted average process costing method. Weighted Average cost method Schedule of Physical and Equivalent Units- Weighted Average Physical Units Dire Equivalent Units Direct % Material completed % Completed Conversion Cost Analysis of Physical Flow of Units Units to be accounted for Beginning WIP Inventory Units Started Total Units To Account for 18,000 80,000 98,000 Units accounted for Units Completed during Period: From Beginning WIP in Inventory Units started and completed during Period Units completed and transferred out Units in Ending WIP Inventory Total Units Accounted for Total Equivalent units 18,000 36,000 54,000 44,000 98,000 100% 28% 54,000 12,320 100% 74% 54,000 32,560 66,320 86,560 Unit Cost Analysis Schedule-Weighted Average Direct Material Conversion Cost Total Costs Cost to Account for Opening Work in process Current Period Costs Total cost $64,996 $190,336 $255,332 $232,407 $385,192 $217,781 $422,743 $640,524 A Divided by Equivalent units Cost per equivalent unit (Current period cost /Equivalent units) 66,320 $3.85 86,560 $4.45 $8.30 A/B Note: In weighted average method Opening WIP cost and Current period cost is added and then divided by equivalent units for EUP Analysis of Total Cost Production Cost Worksheet Direct Material Conversion Cost Total Costs Units Started and completed during period Cost incurred on Opening Work in process during the month Direct Material (56,000 * $3.85) Conversion cost (56,000+ $4.45) Total costs of units completed and transferred to Finished Goods $207,900 $207,900 $240,300 $448,200 $240,300 $240,300 $207,900 $47,432 Ending Work in process Inventory Direct Material (12,320 * $3.85) Conversion cost (32,560* $4.45) Total Cost of Ending Work in Process Total Costs Accounted for $47,432 $144,892 $192,324 $640,524 $144,892 $144,892 $385,192 $47,432 $255,332