1, 2, 3 The Fields Company has two manufacturing departments, forming and painti

Question

1, 2, 3

The 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 25,000 units in inventory, 60% complete as to rm aterials and 40% complete as to conversion costs. The beginning inventory cost of $60,100 consisted of $44,800 of direct materials costs and $15.300 of conver- sion costs. During the month, the forming department started 300,000 units. At the end of the month, the forming department had 30,000 units in ending inventory, 80% complete as to materials and 30% complete as to version. Units completed in the forming department are transferred to the painting department. con

Explanation / Answer

1 Requirment As per the weighted average method Calculation of units Completed EUP units completed +Ending units *Percentage of completion Beginning of the month Started during the month DM 295000 +30000*80% 319000 End of the month Units completed Conversion 295000+30000*30% 304000 DM Conversion 2 Beginning WIP $44,800 $15,300 Costs incurred during the period $1,231,200 $896,700 total cost $1,276,000 $912,000 Total EUP 319000 304000 Cost per equivalent unit $4 $3 3 Cost Assignment EUP Cost per EUP Total Cost Cost of units transferred out DM 295000 $4 $1,180,000 Conversion 295000 $3 $885,000 Total Cost transferred out $2,065,000 Cost of Ending WIP DM 24000 $4 $96,000 Conversion 9000 $3 $27,000 Total Cost of Ending WIP assigned $123,000

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