Question

Tamm.VTON Chapter 3 Homework Help 3 Part 1 of 2 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. 80% complete as to materials and 20% complete as to conversion costs. The beginning inventory cost of $63,200 consisted of $47,200 of direct materials costs and $16,000 of conversion costs. During the month, the forming department started 339,000 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. 3 points % 04:2144 Beginning work in process inventory Direct materials added during the month Conversion added during the month $ 63,200 1,349,600 956,400 eBook 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 Hint Print Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Calculate the equivalent units of production for the forming department Direct Materials Conversion 366.000 956,400 Required 25 < Prev 34 of 17 IN Next > ME Cara Hill

Answer 1

Solution 1-3:

Forming Department
Equivalent units of production (EUP) - Weighted Average method
	Units	% material	EUP-Materials	% Conversion	EUP- Conversion
Units Completed and transferred out	326000	100%	326000	100%	326000
units of Ending work in process	40000	85%	34000	35%	14000
Equivalent units of production			360000		340000
Cost per Equivalent unit:	Material	Conversion
Cost of Beginning Work in Process	$47,200	$16,000
Cost added	$1,349,600	$956,400
Total Costs	$1,396,800	$972,400
/Equivalent units of Production	360000	340000
Cost per Equivalent unit of Production	$3.88	$2.86
Cost of Beginning Work in Process	$63,200.00
Cost added	$2,306,000.00
Total costs to account for	$2,369,200.00
Total costs accounted for	$2,369,200.00
Difference due to rounding cost / unit	$0.00
Cost Assignment and reconciliation
Cost of Units Transferred Out	EUP	Cost per EUP	Total Cost
Material	326000	$3.88	$1,264,880
Conversion	326000	$2.86	$932,360
Total transferred out			$2,197,240
Cost of ending work in process	EUP	Cost per EUP	Total Cost
Material	34000	$3.88	$131,920
Conversion	14000	$2.86	$40,040
Total Ending work in process			$171,960
Total costs assigned				$2,369,200