Question

Required information Use the following information for the Exercises below. The following information applies to the questions displayed below) 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 32,000 units in inventory, 80% complete as to materials and 20% complete as to conversion costs. The beginning inventory cost of $74,100 consisted of $53,200 of direct materials costs and $20,900 of conversion costs. During the month, the forming department started 440,000 units. At the end of the month, the forming department had 40,000 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 $ 74,100 1,650, 320 1,099, 100 ercise 16-7A FIFO: Costs per EUP LO C4 ume that Fields uses the FIFO method of process costing. alculate the equivalent units of production for the forming department

Answer 1

Solution:

Equivalent units of production (EUP) - FIFO method
	Units	% material	EUP-Materials	% Conversion	EUP- Conversion
units in process, beginning	32000	20%	6400	80%	25600
Units started and completed during the month (440000- 40000)	400000	100%	400000	100%	400000
Units in process, Ending	40000	90%	36000	40%	16000
Equivalent units of production			442400		441600
Solution 2:
Cost per Equivalent unit:	Material	Conversion
Cost added during July	$16,50,320	$10,99,100
/Equivalent units of Production	442400	441600
Cost per Equivalent unit of Production	$3.73	$2.49