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 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 Complete this question by entering your answers in the tabs below. Required 3 Required 1 Required 2 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. Cost Assignment and Reconciliation Cost of units transferred out EUP Cost per EUP Total cost Direct materials Conversion Total costs transferred out Costs of ending work in process EUP Cost per EUP Total cost Direct materials 0.00 0.00 Conversion $ 0.00 0.00 Total cost of ending work in process Total costs assigned

Answer 1

Beginning work in process inventory	30000
Add: Units started this period	400000
Less: Ending work in process	-40000
Units completed and transferred out	390000
1
Equivalent units of production (EUP)- weighted average method
	Units	%Materials	EUP-Materials	%Conversion	EUP-Conversion
Units completed and transferred out	390000	100%	390000	100%	390000
Ending work in process	40000	85%	34000	35%	14000
Total units	430000		424000		404000
Equivalent units of production:
Direct materials	424000
Conversion	404000
2
Cost per equivalent unit of production	Materials	Conversion
Cost of beginning work in process	50800	19300
Costs incurred this period	1539200	1047260
Total costs	1590000	1066560
÷ Equivalent units of production	424000	404000
Cost per equivalent unit of production	3.75	2.64
Direct materials	3.75	per EUP
Conversion	2.64	per EUP
3
Cost Assignment and Reconciliation:
Cost of units transferred out	EUP	Cost per EUP	Total cost
Direct materials	390000	3.75	1462500
Conversion	390000	2.64	1029600
Total cost transferred out				2492100
	EUP	Cost per EUP	Total cost
Cost of ending work in Process
Direct materials	34000	3.75	127500
Conversion	14000	2.64	36960
Total Cost of ending work in Process				164460
Total costs assigned				2656560