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 33,000 units in inventory, 65% complete as to materials and 35% complete as to conversion costs. The beginning inventory cost of $76,100 consisted of $54,400 of direct materials costs and $21,700 of conversion costs During the month, the forming department started 460.000 units. At the end of the month, the forming department had 40,000 units in ending inventory, 85% complete as to materials and 45% complete as to conversion. Units completed in the forming department are transferred to the painting department Cost information for the forming department follows. inventoryth Beginning work in process inventory Direct materials added during the month Conversion added during the month 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

Answer 1

1a) Unit transferred out = 33000+460000-40000 = 453000

Equivalent unit of material = 453000+(40000*85%) = 487000

Equivalent unit of conversion = 453000+(40000*45%) = 471000

1b) Cost per equivalent unit

Direct material = (54400+1708540)/487000 = 3.62

Conversion = (21700+1132250)/471000 = 2.45

1c) Cost of unit transferred out = (3.62+2.45)*453000 = 2749710

Cost of endig WIP = (34000*3.62+18000*2.45) = 167180