Question

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 28,000 units in inventory, 70% complete as to materials and 30% complete as to conversion costs. The beginning inventory cost of $67,100 consisted of $49,000 of direct materials costs and $18,100 of conversion costs.
During the month, the forming department started 370,000 units. At the end of the month, the forming department had 40,000 units in ending inventory, 85% complete as to materials and 45% 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	$	67,100
Direct materials added during the month		1,440,600
Conversion added during the month		997,100

1. Calculate the equivalent units of production for the forming department.
2. Calculate the costs per equivalent unit of production for the forming department.
3. Using the weighted-average method, assign costs to the forming department’s output—specifically, its units transferred to painting and its ending work in process inventory.

Calculate the equivalent units of production for the forming department.

• d 1
• Required 2
• Required 3

Calculate the equivalent units of production for the forming department.

Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Calculate the equivalent units of production for the forming department. Direct Materials Conversion Required 1 tubre Required 2 Recured a >

Answer 1

Solution 1:

Forming Department
Equivalent units of production (EUP) - Weighted Average method
	Units	% material	EUP-Materials	% Conversion	EUP- Conversion
Units Completed and transferred out (28000+370000-40000)	358000	100%	358000	100%	358000
units of Ending work in process	40000	85%	34000	45%	18000
Equivalent units of production			392000		376000

Solution 2:

Cost per Equivalent unit:	Material	Conversion
Cost of Beginning Work in Process	$49,000	$18,100
Cost added during the month	$14,40,600	$9,97,100
Total Costs	$14,89,600	$10,15,200
/Equivalent units of Production	392000	376000
Cost per Equivalent unit of Production	$3.80	$2.70

Solution 3:

Cost Assignment and reconciliation
Cost of Units Transferred Out	EUP	Cost per EUP	Total Cost
Material	358000	$3.80	$13,60,400
Conversion	358000	$2.70	$9,66,600
Total transferred out			$23,27,000
Cost of ending work in process	EUP	Cost per EUP	Total Cost
Material	34000	$3.80	$1,29,200
Conversion	18000	$2.70	$48,600
Total Ending work in process			$1,77,800
Total Costs assigned				$25,04,800