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 27,000 units in inventory, 65% complete as to materials and 35% complete as to conversion costs. The beginning inventory cost of $66,100 consisted of $48,400 of direct materials costs and $17,700 of conversion costs. During the month, the forming department started 360,000 units. At the end of the month, the forming department had 35,000 units in ending inventory, 80% complete as to materials and 40% 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 66,100 1,410,800 985,140 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 1 Required 2 Calculate the equivalent units of production for the forming department. Direct Materials Conversion Complete this question by entering your answers in the tabs below. Required 1 Required 2 Calculate the costs per equivalent producti the forming department. (Round your answers to 2 decimal places.) Direct Materials Conversion per EUP per EUP

Answer 1

Solution

	Material	Conversion
Equivalent Units of Production	3,62,450	3,56,550

.

	Material	Conversion
Cost per equivalent Unit	$             3.89	$                   2.76

Working

STEP 1 (FIFO)
Reconciliation of Units
	Units	% already completed		% completed this period
		Material	Conversion cost	Material	Conversion cost
Beginning WIP	27,000	65%	35%	35%	65%
Units introduced	3,60,000
Total units to be accounted for	3,87,000
Completed and Transferred unit	3,52,000	0%	0%	100%	100%
Ending WIP	35,000	0%	0%	80%	40%

.

STEP 2 (FIFO)
Equivalent Units
	Total Units	Material		Conversion cost
Units Transferred:		% completed this period	Equivalent Units	% completed this period	Equivalent Units
From WIP	27,000	35%	9,450	65%	17,550
From units started/Introduced	3,25,000	100%	3,25,000	100%	3,25,000
Total	3,52,000		3,34,450		3,42,550
	Total Units	Material		Conversion cost
Ending WIP		% completed this period	Equivalent Units	% completed this period	Equivalent Units
Total	35,000	80%	28,000	40%	14,000
Total EUP	3,87,000		3,62,450		3,56,550

.

STEP 3
Cost per Equivalent Units AND Cost to be accounted for
	Material		Conversion cost		TOTAL
Cost incurred in Current Period	$ 1,410,800		$ 985,140		$ 2,395,940
Total Equivalent Units	3,62,450		3,56,550
Cost per Equivalent Units	$ 3.89		$ 2.76		$ 6.66
Cost of Beginning WIP					$ 66,100
Total cost to be accounted for					$ 2,462,040