Question

Fields Company has two manufacturing departments, forming and painting. The company uses the weighted-average method of process costing. At the beginning of the month, the forming department has 27,000 units in inventory, 80% complete as to materials and 20% complete as to conversion costs. The beginning inventory cost of $63,200 consisted of $47,200 of direct materials costs and $16,000 of conversion costs.

During the month, the forming department started 339,000 units. At the end of the month, the forming department had 40,000 units in ending inventory, 85% complete as to materials and 35% complete as to conversion. Units completed in the forming department are transferred to the painting department.

Cost information for the forming department follows.

Beginning work in process inventory	$	63,200
Direct materials added during the month		1,349,600
Conversion added during the month		956,400

1. Calculate the equivalent units of production for the forming department.
2. Calculate the costs per equivalent unit of production for the forming department.
3. Using the weighted-average method, assign costs to the forming department’s output—specifically, its units transferred to painting and its ending work in process inventory.

Part 1

Direct Materials _______

Conversion ________

Part 2

Direct Materials ______ per EUP

Conversion ___________ per EUP

Part 3

J. Uungu WILLUULULUTO, IL U UPUCIJUYUL JPELICU. IL and its ending work in process inventory. X Answer is not complete. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Using the weighted average method, assign costs to the forming department's output-specifically, its units tra painting and its ending work in process inventory. Cost Assignment and Reconciliation EUP Cost per EUP Total cost Cost of units transferred out Direct materials Conversion Total costs transferred out EUP Cost per 1 FUP Total cost 0.00 0.00 Costs of ending work in process Direct materials Conversion Total cost of ending work in process Total costs assigned 0.00 0.00 Required 2

Answer 1

Beginning work in process inventory	27000
Add: Units started this period	339000
Less: Ending work in process	-40000
Units completed and transferred out	326000
1
Equivalent units of production (EUP)- weighted average method
	Units	%Materials	EUP-Materials	%Conversion	EUP-Conversion
Units completed and transferred out	326000	100%	326000	100%	326000
Ending work in process	40000	85%	34000	35%	14000
Total units	366000		360000		340000
Equivalent units of production:
Direct materials	360000
Conversion	340000
2
Cost per equivalent unit of production	Materials	Conversion
Cost of beginning work in process	47200	16000
Costs incurred this period	1349600	956400
Total costs	1396800	972400
÷ Equivalent units of production	360000	340000
Cost per equivalent unit of production	3.88	2.86
Direct materials	3.88	per EUP
Conversion	2.86	per EUP
3
Cost Assignment and Reconciliation:
Cost of units transferred out	EUP	Cost per EUP	Total cost
Direct materials	326000	3.88	1264880
Conversion	326000	2.86	932360
Total cost transferred out				2197240
	EUP	Cost per EUP	Total cost
Cost of ending work in Process
Direct materials	34000	3.88	131920
Conversion	14000	2.86	40040
Total Cost of ending work in Process				171960
Total costs assigned				2369200