#3 0 Required information [The following information applies to the questions di
ID: 2333748 • Letter: #
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#3
0 Required information [The following information applies to the questions displayed below.] 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 29,000 units in inventory, 75% complete as to materials and 25% complete as to conversion costs. The beginning inventory cost of $68,100 consisted of $49,600 of direct materials costs and $18,500 of conversion costs. During the month, the forming department started 380,000 units. At the end of the month, the forming department had 30,000 units in ending inventory, 90% complete as to materials and 50% complete as to conversion. Units completed in the forming department are transferred to the painting department. Cost information for the forming department is as follows: Beginning work in process inventory Direct materials added during the month Conversion added during the month $ 68,100 1,468,840 1,013,780 1. Calculate the equivalent units of production for the forming department. Direct Materials ConversionExplanation / Answer
1) Unit transferred out = 29000+380000-30000 = 379000 Unit
Direct material equivalent unit = 379000+(30000*90%) = 406000 Unit
Conversion cost equivalent unit = 379000+(30000*50%) = 394000 Units
2) Cost per equivalent unit
Direct material = (49600+1468840)/406000 = 3.74 per equivalent unit
Conversion = (18500+1013780)/394000 = 2.62 per equivalent unit
3) Cost assignment and reconciliation:
1) Equivalent unit:
Unit transferred out = 29000+380000-30000 = 379000 Unit
Direct material = (29000*25%+350000*100%+30000*90%) = 384250 Unit
Conversion = (29000*75%+350000*100%+30000*50%) = 386750 Units
2) Cost per equivalent unit :
Direct material = 1468840/384250 = 3.82 per equivalent unit
Conversion = 1013780/386750 = 2.62 per equivalent unit
Cost of units transferred out EUP Cost per EUP Total cost Direct material 379000 3.74 1417460 conversion 379000 2.62 992980 Total costs transferred out 2410440 Cost of ending work in process EUP Cost per EUP Total cost Direct materials 27000 3.74 100980 Conversion 15000 2.62 39300 Total cost of ending work in process 140280 Total cost assigned 2550720Related Questions
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