Question

Required information Use the following information for the Exercises below. The following information applies to the questions displayed below.) 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 34,500 units in inventory. 80% complete as to materials and 20% complete as to conversion costs. The beginning inventory cost of $79,100 consisted of $56,200 of direct materials costs and $22.900 of conversion costs. During the month, the forming department started 490,000 units. At the end of the month, the forming department had 30,000 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 29,100 1.500,200 1,179,000 Exercise 16-6 Weighted average: Cost per EUP and costs assigned to output LO C2 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.

Answer 1

Answer with working notes is given below

1 Equivalent units of production Direct Material Conversion 520,000 505,000 2 Direct Material Conversion $3.57 per EUP $2.38 per EUP Working notes: Unit Reconciliation: Units to account for: Beginning WIP Inventory Units Started During Period Total Units To Account for 34,500 490,000 524,500 Total Units accounted for From Beginning WIP in Inventory Units started and completed during Period Units transferred out to Painting Department Units in Ending WIP Inventory Total Units Accounted for 34,500 460,000 494,500 30,000 524,500 Equivalent Units of Production - Weighted average method EUP % EUP Materials Conversion Conversion 494,500 25,500 100% 35% 494,500 10,500 % Units Materials Units Completed during Period: Units transferred out to Painting Department 494,500 100% Units in Ending WIP Inventory 30,000 85% Total Units To Account for 524,500 Equivalent Units of production Cost per equivalent unit of production Cost from Beginning WIP Inventory Current Period Costs Total cost Costs Equivalent units of production Cost per equivalent unit of production ( rounded to 2 decimal places) 520,000 Materials $56,200 $1,800,200 $1,856,400 Costs 520,000 EUP $3.57 505,000 Conversion $22,900 $1,179,000 $1,201,900 A 505,000 B $2.38 A/B EUP 3 EUP Cost per EUP Total Cost 494,500 494,500 $3.57 $2.38 $1,765,365 $1,176,910 Cost Assginement and Reconcilation Total Cost accounted for: Cost of units transferred out Direct Material Conversion Total cost transferred out Costs of ending work in process Direct Material Conversion Total cost of ending Work in process Total Cost assigned $2,942,275 EUP Cost per EUP Total Cost 25,500 $3.57 $91,035 10,500 $2.38 $24,990 $116,025 $3,058,300