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, 65% complete as to materials and 35% complete as to conversion costs. The beginning Inventory cost of $71,100 consisted of $51,400 of direct materials costs and $19,700 of conversion costs. During the month, the forming department started 410,000 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 71,100 1,564,120 1,261,580 Exercise 20-6 Weighted average: Cost per EUP and costs assigned to output LO C2 Calculate the equivalent units of production for the forming department Direct Materials Conversion

Answer 1

1
Equivalent units of production (EUP)- weighted average method
	Units	%Materials	EUP-Materials	%Conversion	EUP-Conversion
Units completed and transferred out	412000	100%	412000	100%	412000
Ending work in process	30000	90%	27000	40%	12000
Total units	442000		439000		424000
Direct materials	439000
Conversion	424000
2
Cost per equivalent unit of production	Materials	Conversion
Cost of beginning work in process	51400	19700
Costs incurred this period	1564120	1061500
Total costs	1615520	1081200
÷ Equivalent units of production	439000	424000
Cost per equivalent unit of production	3.68	2.55
Direct materials	3.68	per EUP
Conversion	2.55	per EUP
3
Total cost accounted for:
Cost of units transferred out	EUP	Cost per EUP	Total cost
Direct materials	412000	3.68	1516160
Conversion	412000	2.55	1050600
Total cost transferred out				2566760
	EUP	Cost per EUP	Total cost
Cost of ending work in Process
Direct materials	27000	3.68	99360
Conversion	12000	2.55	30600
Total Cost of ending work in Process				129960
Total cost assigned				2696720