Question

Exercise 16-7A FIFO: Costs per EUP LO C4 Assume that Fields uses the FIFO method of process costing Calculate the equivalent units of production for the formning 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. RequiredFrequired 2 the equivalent units of for the forming department

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 33,500 units in inventory, 70% complete as to materials and 30% complete as to conversion costs. The beginning inventory cost of $77,100 consisted of $55,000 of direct materials costs and $22,100 of conversion costs. During the month, the forming department started 470,000 units. At the end of the month, the forming department had 35,000 units in ending inventory, 90% complete as to materials and 50% 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 $ 77,100 1,745,000 1,154,20 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 Prov 14 Nou

Answer 1

Answer

• Workings

Units Reconciliation
Units to account for:
Beginning WIP	33,500
Units started this period	470,000
Total Units to account for	503,500
Total Units accounted for:
Completed & Transferred out	468,500
Ending WIP	35,000
Total Units accounted for	503,500

• Requirement 1 with workings

EUP - FIFO Method	Units	% Material	EUP Materials	% Conversion	EUP - Conversion
Units of ENDING WIP	35,000	90.0%	31,500	50.0%	17,500
Units STARTED & COMPLETED	435,000	100%	435,000	100%	435,000
Units of beginning WIP	33,500	30.00%	10,050	70%	23,450
Equivalent Units of Production			476,550		475,950

• Requirement 2

COST per EUP			Material		Conversion
Cost incurred this period			$    1,745,000.00		$              1,154,020.00
Total Costs		Costs	$    1,745,000.00	Costs	$              1,154,020.00
Equivalent units of production		EUP	476,550	EUP	475,950
Cost per EUP			$                3.6617 or $ 3.67		$                          2.4247 or $ 2.42