Question

Required information (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 35,000 units in inventory, 60% complete as to materials and 40% complete as to conversion costs. The beginning inventory cost of $80,100 consisted of $56,800 of direct materials costs and $23.300 of conversion costs. During the month, the forming department started 500,000 units. At the end of the month, the forming department had 40,000 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 follows. Beginning work in process inventory Direct materials added during the month Conversion added during the month $ se, 100 1,828,250 1, 192,880 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

Equivalent units of production-Weighted Average Method EUP - Conversion Units % Material EUP-Material Conversion Units to be accounted for:- Units Completed & transferred out Units of Ending work in Process Equivalent units of production 495000 40000 535000 100% 90% 495000 36000 531000 100% 40% 495000 16000 511000 Units completed & transferred = Beginning inventory + Units started - Ending Inventory = 35000+500000-40000 = 495000 10 Cost Per EUP Cost of Beginning work in process Cost incurred this period Total Cost Equivalent units of productiom Cost per Equivalent unit $ $ $ Material Conversion 56,800 $ 23,300 $ 1,828,250 $ 1,192,880$ 1,885,050 $ 1,216,180 $ 531000 511000 3.55 $ 2.38 Total 80,100 3,021,130 3,101,230 Divide $ EUP Cost per EUP 495000 $ 3.55 495000 $ 2.38 $ $ Total Cost 1,757,250 1,178,100 $ 2,935,350 Cost Assignment & Reconcilliation Cost transferred out Direct Material Conversion Total Transferred out Cost of Ending work in process Direct Material Conversion Total ending work in process Total cost Accounted for EUP Cost per EUP 36000 $ 3.55 16000 $ 2.38 $ $ Total Cost 127,800 38,080 $ 165,880 $ 3,101,230