Question

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Use the following information for the Exercises below.

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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, 70% complete as to materials and 30% complete as to conversion costs. The beginning inventory cost of $56,100 consisted of $40,000 of direct materials costs and $16,100 of conversion costs.

During the month, the forming department started 320,000 units. At the end of the month, the forming department had 35,000 units in ending inventory, 80% 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	$	56,100
Direct materials added during the month		1,660,000
Conversion added during the month		929,300

Exercise 16-6 Weighted average: Cost per EUP and costs assigned to output LO C2

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.

Calculate the equivalent units of production for the forming department.

Direct Materials:

Conversion:

Calculate the costs per equivalent unit of production for the forming department. (Round your answers to 2 decimal places.)

Direct Materials per EUP =

Conversion per EUP =

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

1)

Equivalent Units of Production (EUP) - Weighted Average Method
				Units	% Mat.	EUP- Mat.	% Conv.	EUP- Conv.
Units completed and transferred out				312000	100%	312000	100%	312000
Units in ending inventory				35000	80%	28000	40%	14000
Equivalent units of production						340000		326000

2)

Cost per Equivalent Unit of Production
					Materials		Conversion
Beginning costs					$      40,000.00		$   16,100.00
During the month costs					$ 1,660,000.00		$ 929,300.00
Total cost				Costs	$ 1,700,000.00	Costs	$ 945,400.00
÷	Equivalent units of production			EUP	340000	EUP	326000
Cost per equivalent unit of production					$                5.00		$             2.90

3)

Cost Assignment and Reconciliation
Cost of units transferred out				EUP	Cost/ EUP	Total Cost
Direct Materials				312000	$      5.00	$ 1,560,000.00
Conversion				312000	$      2.90	$    904,800.00
Total costs transferred out						$ 2,464,800.00
Cost of ending work in process				EUP	Cost/ EUP	Total Cost
Direct Materials				28000	$      5.00	$    140,000.00
Conversion				14000	$      2.90	$      40,600.00
Total cost of ending work in process						$    180,600.00
Total costs accounted for							$ 2,645,400.00