Question

Required information Use the following information for the Exercises below. [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 34,000 units in inventory, 75% complete as to materials and 25% complete as to conversion costs. The beginning inventory cost of $78,100 consisted of $55,600 of direct materials costs and $22,500 of conversion costs. During the month, the forming department started 480,000 units. At the end of the month, the forming department had 40,000 units in ending inventory, 80% complete as to materials and 30% 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 $ 78,100 1,771,060 1,163,340

Answer 1

Requirement 1

	Equivalent units
Material	506,000
Conversion	486,000

Requirement 2

	Cost per equivalent Unit
Material	$                     3.61
Conversion	$                     2.44

Requirement 3

Cost assignment and reconciliation
Cost of Units transferred out	EUP	Cost per EUP	Total cost
Direct material	474000	$          3.61	$        1,711,140
Conversion	474000	$          2.44	$        1,156,560
Total costs transferred out				$ 2,867,700
Cost of ending work in process	EUP	Cost per EUP	Total cost
Direct material	32000	$          3.61	$            115,520
Conversion	12000	$          2.44	$              29,280
Total cost of ending work in process				$     144,800
Total costs assigned			$        3,012,500	$ 3,012,500