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 31,000 units in inventory, 70% complete as to materials and 30% complete as to conversion costs. The beginning inventory cost of $72,100 consisted of $52,000 of direct materials costs and $20,100 of conversion costs.

During the month, the forming department started 420,000 units. At the end of the month, the forming department had 40,000 units in ending inventory, 80% complete as to materials and 30% complete as to conversion. Units completed in the forming department are transferred to the painting department.n
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Answer 1

Solutions:

D Н Equivalent units of production (EUP) - FIFO method % material EUP-Materials % Conversion EUP- Conversion 30% 9. Units units in process, beginning 10 70% 31000 21700 9300 Units started and completed (420000- 11 40000) Toal units completed and transferred 380000 100% 380000 100% 380000 12 401700 389300 out Units in process, ending 30% 13 40000 80% 32000 12000 Equivalent units of production 421300 413700 14 15 Solution 2: 16 17 Cost per Equivalent unit: Cost added during the month 18 Material Conversion $1,631,400 $1,079,700| 19 /Equivalent units of Production Cost per Equivalent unit of Production 20 421300 413700 $3.87 $2.61 21 22 23 24. Sheet206 (4) Sheet206 (2) Sheet206 (3) et202 Sheet204 Sheet203 Sheet205 Sheet206 ПI