Question

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 27,000 units in inventory, 65% complete as to materials and 35% complete as to conversion costs. The beginning inventory cost of $66,100 consisted of $48,400 of direct materials costs and $17,700 of conversion costs.

During the month, the forming department started 360,000 units. At the end of the month, the forming department had 35,000 units in ending inventory, 80% 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	$	66,100
Direct materials added during the month		1,410,800
Conversion added during the month		985,140
Cs cuess it says Runs prouದರಿಂn for reforming Tecಾಗಗಗ Doctor Conversion Calculate the costs per equivalent unit of production for the forming department por EUP Direct Materials Conversion Using the weighted average method, assign costs to the forming department's output-specifically its units transferred to painting and tending work in process Inventory. Cost Acsignment and Reconciliation Cost of units transferred EUP N EUP Cost per EUP Total cost Conversion Totalcoansformed at Costanding work in process Direct Conversion Total cost of ending working

Answer 1

1) Unit transferred out = 27000+360000-35000 = 352000

equivalent unit of material = 352000+(35000*80%) = 380000

Equivalent unit of conversion = 352000+(35000*40%) = 366000

2) Cost per equivalent unit

Material = (48400+1410800)/380000 = 3.84

Conversion = (17700+985140)/366000 = 2.74

3)

Cost assignment and reconciliation
cost of units transferred out	EUP	Cost per EUP	Total Cost
Direct material	352000	3.84	1351680
Conversion	352000	2.74	964480
Total Cost transferred out				2316160
Cost of ending work in process	EUP	Cost per EUP	Total Cost
Direct material	28000	3.84	107520
Conversion	14000	2.74	38360
Total Cost of ending work in process				145880
Total Cost assigned				2462040