The Fields Company has two manufacturing departments, forming and painting. The

Question

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 30,000 units in inventory, 80% complete as to materials and 20% complete as to conversion costs. The beginning inventory cost of $69,100 consisted of $50,200 of direct materials costs and $18,900 of conversion costs.

During the month, the forming department started 390,000 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.

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.

Beginning work in process inventory $ 69,100 Direct materials added during the month 1,507,160 Conversion added during the month 1,031,660

Explanation / Answer

1- Calculate the equivalent units of production for the forming department. direct material 412000 conversion 392000 2-Calculate the costs per equivalent unit of production for the forming department. direct material $3.78 conversion $2.68 3 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. cost of units transferred out EUP    cost per EUP total costs direct material 380000 3.78 1436400 conversion 380000 2.68 1018400 total costs transferred out 2454800 cost of ending work in process EUP cost per EUP   Total costs Direct materials 32000 $3.78 $120,960.00 Conversion 12000 $2.68 $32,160.00 Total costs of ending work in process   $153,120.00 Total costs assigned $2,607,920.00 Explaination 1) Equivalent units of production Direct material Conversion units completed and transferred out (380000*100%) 380000 380000 Units of ending work in progress (40000*80%) 32000 Direct material(40000*30%) 12000 412000 392000 2) Cost per equivalent unit Direct material Conversion 50200 18900 Cost incurred this period 1507160 1031660 1557360 1050560 Divided by equivalent units of production 412000 392000 Cost of equivalent unit of production 3.78 2.68

Related Questions

Navigate

• Browse (All)
• Browse T
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.