Question

how do i calculate?

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 30,000 units in inventory, 60% complete as to materials and 40% complete as to conversion costs. The beginning inventory cost of $70,100 consisted of $50,800 of direct materials costs and $19,300 of conversion costs. During the month, the forming department started 400,000 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 Direct materials added during the month Conversion added during the month 70, 100 1,539,200 1,047,260 Assume that Fields uses the FIFO method of process costing. 1. Calculate the equivalent units of production for the forming department. 2. Calculate the costs per equivalent unit of production for the forming department.

Answer 1

Answer with working is given below

FIFO Method Equivalent Units Direct Materials Conversion 406,000 392,000 Direct Materials Conversion $3.79 Per EUP $2.67 Per EUP Schedule of Physical and Equivalent Units- FIFO Cost method Equivalent units Physical % Conversion Material Units Completed Completed Cost Units to be accounted for Beginning WIP Inventory Units Started During Period 30,000 400,000 Total Units To Account for 430,000 Units accounted for 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 60% 40% 30,000 12,000 18,000 100% 360,000 100% 360,000 360,000 390,000 85% 35% 40,000 34,000 14,000 Total Units To Account for 430,000 Equivalent units of produciton 406,000 392,000 Unit Cost Analysis Schedule Conversion Material Cost Cost to Account for Current Period Costs Total cost $1,539,200 $1,539,200 $1,047,260 $1,047,260 Equivalent Units Cost per equivalent unit 406,000 $3.79 392,000 $2.67