Question

(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, 65% complete as to materials and 35% complete as to conversion costs. The beginning inventory cost of $81,100 consisted of $57,400 of direct materials costs and $23,700 of conversion costs. During the month, the forming department started 510,000 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 $ 81,100 1,879,400 1,214,320 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. 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

Answer 1

As per HOMEWORKLIB RULES experts are instructed to answer the first question if a student posts multiple questions in one post.

	Beginning work in process			36,000	Completed & Transferred			506,000
	started during the year			510,000	Ending work in process			40,000
	units to be accounted			546,000	units accounted for			546,000
1)	Equivalent units
				units	% mater	materials	% CC	conversion
	completed & Transferred			506,000	100%	506,000	100%	506,000
	Ending work in process			40,000	80%	32000	30%	12000
	Equivalent units			546,000		538,000		518,000
		Direct materials		538,000
		Conversion		518,000
2)	cost per Equivalent units of production
					Materials	CC	Total
	Beginning work in process				57,400	23,700	81,100
	cost added during the year				1,879,400	1,214,320	3,093,720
	total cost				1,936,800	1,238,020	3,174,820
	Equivalent units				538,000	518,000
	cost per unit				3.6	2.39	5.99
		Direct materials		3.6	per EUP
		Conversion		2.39	per EUP
3)	Cost Assignment and Reconciliation
	Cost of units transferred out				EUP	cost per EUP	Total cost
	Direct Materials				506,000	3.6	1821600
	Conversion				506,000	2.39	1209340
	total costs transferred out							3,030,940
	costs of ending work in process
	Direct Materials				32000	3.6	115200
	Conversion				12000	2.39	28680
	total cost of ending work in process							143,880
	total costs assigned							3,174,820