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 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. ak at 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. onces Beginning work in process inventory Direct materials added during the month Conversion added during the month $ 82,100 1,689,000 1,226,700 Exercise 16-7A FIFO: Costs per EUP LO C4 Assume that Fields uses the FIFO method of process costing. 1. Calculate the equivalent units of production for the forming department. 2. Calculate the costs per equivalent unit of production for the forming department. Complete this question by entering your answers in the tabs below. Required Required 2 Calculate the equivalent units of production for the forming department.

Answer 1

1
	Direct materials	Conversion
To complete beginning work in process	10800	25200
Units started and completed	480000	480000
Ending work in process	34000	14000
Equivalent units of production	524800	519200
Direct materials	524800
Conversion	519200
2
	Direct materials	Conversion
Costs during the month	1889000	1226700
/ Equivalent units of production	524800	519200
Cost per Equivalent unit of production	3.60	2.36
Direct materials	3.60	per EUP
Conversion	2.36	per EUP

Workings:
	Direct materials	Conversion
To complete beginning work in process	=36000*(1-70%)	=36000*(1-30%)
Units started and completed	=520000-40000	=520000-40000
Ending work in process	=40000*85%	=40000*35%