Question

Return to que 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 36,000 units In Inventory, 70% complete as to materials and 30% complete as to conversion costs. The beginning inventory cost of $82,100 consisted of $58,000 of direct materials costs and $24,100 of conversion costs. During the month, the forming department started 520,000 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 $ 82,100 1,889,000 1.1226,700 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 is not complete. Complete this question by entering your answers in the tabs below.

Answer 1

(1)

Direct materials	550000
Conversion	530000

Explanations :-

Equivalent units	Direct materials	Conversion
Units completed & transferred	516000	516000
Ending WIP
(40000 * 85%)	34000
(40000 * 35%)		14000
Equivalent units	550000	530000

(2)

Direct materials	$3.54	per EUP
Conversion	$2.36	per EUP

Explanations :-

	Direct materials	Conversion
Beginning WIP cost	$58,000	$24,100
Cost added during period	$1,889,000	$1,226,700
Total cost	$1,947,000	$1,250,800
÷ Equivalent units	550000	530000
	$3.54	$2.36

(3)

Cost Assignment & Reconciliation
Cost of units transferred out	EUP	Cost per EUP	Total cost
Direct materials	516000	$3.54	$1,826,640
Conversion	516000	$2.36	$1,217,760
Total costs transferred out				$3,044,400
Cost of ending work in process	EUP	Cost per EUP	Total cost
Direct materials	34000	$3.54	$120,360
Conversion	14000	$2.36	$33,040
Total cost of ending work in process				$153,400
Total costs assigned				$3,197,800