Question

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Exercise 3-6 Weighted average: Cost per EUP and costs assigned to output LO C2 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 36,500 units in inventory, 75% complete as to materials and 25% complete as to conversion costs. The beginning inventory cost of $83,100 consisted of $58,600 of direct material costs and $24,500 of conversion cost. During the month, the forming department started 530,000 units. At the end of the month, the forming department had 53,000 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 83,100 2,045,900 1,445,925 1. Calculate the equivalent units of production for the forming department Direct Materials Conversion 2. Calculate the costs per equivalent unit of production for the forming department. (Round your answer to 2 decimal places.) Direct Materials Conversion EUP EUP

Answer 1

Answer with working notes is given below

1 Equivalent units -Forming Department Direct Material Conversion 561,200 534,700 Direct Materials Conversion $3.75 $2.75 EUP EUP Unit Reconciliation: Units to account for: Beginning WIP Inventory Units Started During Period Total Units To Account for 36,500 530,000 566,500 Total Units accounted for From Beginning WIP in Inventory Units started and completed during Period Units completed and transferred out Units in Ending WIP Inventory Total Units Accounted for 36,500 477,000 513,500 53,000 566,500 EUP % EUP Materials Conversion Conversion Equivalent Units of Production - Weighted average method Total Units To Account for % Units Materials Units Completed during Period: Units completed and transferred out 513,500 100% Units in Ending WIP Inventory 53,000 90% 566,500 Cost per equivalent unit of production Cost from Beginning WIP Inventory Current Period Costs Total cost Costs Equivalent units of production EUP Cost per equivalent unit of production (rounded to 2 decimal places) 513,500 100% 47,700 40% 561,200 Materials $58,600 $2,045,900 $2,104,500 costs 561,200 EUP $3.75 513,500 21,200 534,700 Conversion $24,500 $1,445,925 $1,470,425 A 534,700 B $2.75 A/B EUP Cost per EUP Total Cost 513,500 513,500 $3.75 $2.75 $1,925,625 $1,412,125 $3,337,750 Cost Assignment and Reconciliation Cost of units transferred out Direct Materials Conversion Total cost transferred out Costs of ending work in process Direct Materials Conversion Total cost of ending Work in process Total Cost assigned EUP 47,700 21,200 Cost per EUP Total Cost $3.75 $178,875 $2.75 $58,300 $237,175 $3,574,925