Question

Check my work Required information Use the following information for the Exercises below. (The following information applies to the questions displayed below.) points eBook The 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 35,000 units in inventory, 75% complete as to materials and 25% complete as to conversion costs. The beginning inventory cost of $83,100 consisted of $58,600 of direct materials costs and $24,500 of conversion costs. Hint Print During the month, the forming department started 530,000 units. At the end of the month, the forming department had 30,000 units in ending inventory, 90% complete as to materials and 40% complete as to conversion. Units completed in the forming department are transferred to the painting department. Cost information for the forming department is as follows: $ Beginning work in process inventory Direct materials added during the month Conversion added during the month 83,100 1,908,400 1,244,540 Exercise 20-6 Weighted average: Cost per EUP and costs assigned to output LO C2

Answer 1

Answer with working is given below

Equivalent Units of Production - Weighted Average Method Equivalent Units- Weighted Average EUP EUP % Conversion Units % Materials Conversion Materials Units Completed during Period: From Beginning WIP in Inventory Units started and completed during Period Total units completed during period Units in Ending WIP Inventory 35,000 500,000 535,000 27,000 100% 100% 535,000 535,000 90% 40% 30,000 12,000 Total Units To Account for 565,000 562,000 Equivalent Units of production 547,000 Materials Conversion Cost from Beginning WIP Inventory Current Period Costs Total cost $58,600 $24,500 $1,908,400 $1,967,000 Costs $1,244,540 $1,269,040 Costs Equivalent units of production Cost per equivalent unit of production 562,000 EUP EUP 547,000 $3.50 $2.32 In Average cost method Total cost of Opening Work in process and current period cost is divided by equivalent units Equivalent Units of production Direct Material 1 562,000 547,000 Conversion Cost per Equivalent Unit Direct Material Conversion 2 Per EUP $3.50 Per EUP $2.32 Total Costs to Account for Opening WIP Direct Material Conversion Cost Total Cost to Account for $83,100 $1,908,400 $1,244,540 $3,236,040 $3,236,040 Total costs accounted for Cost Assignment and reconciliation Cost of Unit transferred out 3 Total Cost EUP Cost per EUP $1,872,500 $1,241,200 $3,113,700 Direct Material Conversion $3.50 535,000 $2.32 535,000 Total cost transferred out Costs of ending work in process EUP Cost per EUP Total Cost $94,500 $27,840 $122,340 Direct Material 27,000 12,000 $3.50 Conversion Total cost of ending Work in process $2.32 Total Costs accounted for $3,236,040