Question

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 27,000 units in Inventory, 80% complete as to materials and 20% complete as to conversion costs. The beginning inventory cost of $63,200 consisted of $47.200 of direct materials costs and $16,000 of conversion costs During the month, the forming department started 339,000 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 hth $ 63,200 1,349,600 956, 400 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.

pt 2.

Answer 1

Calculate the requirements as follows: A G B C D E F Company F Equivalent Units of Production (EUP) - Weighted Average Method EUP- % Units % Materials Materials Conversion Units completed during the period 3,26,000 100% 3,26,000 100% Ending work in process 40,000 85% 34,000 35% Equivalent Units of Production 3.66,000 3,60,000 1 3 4 5 EUP- Conversion 3,26,000 14,000 3,40,000 6 8 9 10 11 12 13 2 Cost per Equivalent unit of Production Cost of beginning inventory Cost incurred during the period Total costs + Equivalent units of production Cost per equivalent unit of production Materials $47,200 $13.49.600 $13,96,800 3.60.000 $3.88 Conversion $16,000 $9.56.400 $9,72,400 3.40.000 $2.86 Costs EUP Costs EUP 16 17 18 19 20 EUP Cost per EUP 3,26,000 $3.88 3,26,000 $2.86 Total cost $12,64,880 $9.32.360 $21.97,240 3 Cost Assignment and Reconciliation Cost of units transferred out | Direct materials Conversion Total costs transferred out Cost of ending work in process Direct materials Conversion Total cost of ending work in process Total costs accounted for 21 34,000 14,000 $3.88 $2.86 $1,31,920 $40.040 $1.71.960 24 25 $23,69,200

Calculations: A в Company F Equivalent Units of Production (EUP) - Weighted Average Method 31 4 5 6 Units completed during the period Ending work in process Equivalent Units of Production Units % Materials EUP-Materials % Conversion EUP-Conversion =27000+339000-40000 1 -C4D4 1 -C4°F4 40000 0.85 =C5*D5 0.35 =C5*F5 =C4+C5 =E4+E5 =G4+G5 8 2 10 Cost per Equivalent unit of Production Cost of beginning inventory Cost incurred during the period Total costs + Equivalent units of production Cost per equivalent unit of production Materials 47200 1349600 =D9+D10 =E6 =D11/12 Conversion 16000 956400 =F9+F10 =G6 =F11/F12 11 Costs EUP Costs EUP 13 14 15 16 3 17 EUP 18 =E4 =G4 Cost per EUP =D13 =F13 Total cost =C18*D18 =C19*D19 =SUME 18:E19) Cost Assignment and Reconciliation Cost of units transferred out Direct materials Conversion Total costs transferred out Cost of ending work in process Direct materials Conversion Total cost of ending work in process Total costs accounted for =E5 =D13 =F13 =C22*D22 =C230D23 =SUME 22:E23) =E20+E24
Final answers for part 1 and 2:

1 Equivalent Units of Productions Direct Materials 360000 Conversion 340000 Equivalent cost per unit Direct Materials $3.88 per unit Conversion costs $2.86 per unit