Question

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, 65% complete as to materials and 35% complete as to conversion costs. The beginning inventory cost of $61,000 consisted of $45.000 of direct materials costs and $16,000 of conversion costs. During the month, the forming department started 300,000 units. At the end of the month, the forming department had 35,000 units in ending inventory, 90% complete as to materials and 20% 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 $ 61,000 1,261,000 890,000 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 1 Required 2 Required 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. EUP Cost per EUP Total cost Cost Assignment and Reconciliation Cost of units transferred out Direct materials Conversion Total costs transferred out Costs of ending work in process Direct materials Conversion Total cost of ending work in process Total costs assigned EUP Total cost Cost per EUP 0.00 $ 0.00 0.00 0.00

Answer 1

1) Equivalent unit

	Whole unit	% Material	EUP-material	% Conversion	EUP-Conversion
Unit transferred out	295000	100%	295000	100%	295000
Ending work in process	35000	90%	31500	20%	7000
Equivalent unit	330000		326500		302000

2) Cost per equivalent unit

	Direct material	Conversion
Beginning WIP	45000	16000
Cost added	1261000	890000
Total Cost	1306000	906000
Equivalent unit	326500	302000
Cost per equivalent unit	4	3

3) Cost reconciliation

Cost assignment and reconciliation
Cost of units transferred out	EUP	Cost per EUP	Total Cost
Direct materials	295000	4	1180000
Conversion	295000	3	885000
Total costs transferred out				2065000
Cost of ending work in process	EUP	Cost per EUP	Total cost
Direct material	31500	4	126000
Conversion	7000	3	21000
Total cost of ending work in process				147000
Total costs assigned				2212000