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 29,000 units in inventory, 75% complete as to materials and 25% complete as to conversion costs. The beginning inventory cost of S68,100 consisted of S49,600 of direct material costs and $18,500 of conversion cost. During the month, the forming department started 380,000 units. At the end of the month, the forming department had 38,000 units in ending inventory, 90% 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 is as follows Beginning work in process inventory Direct materials added during the month Conversion added during the month S 68,100 1,206,520 908,380 1. Calculate the equivalent units of production for the forming department. Direct Materials 2. Calculate the costs per equivalent unit of production for the forming department. (Round your answer to 2 decimal places.) Direct Materials EUP EUP 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. (Round your "costs per equivalent unit" to two decimal places and use the rounded answer in further computations.) Cost Assignment and Reconciliation Cost of units transferred out EUP Cost per EUP Total cost Direct materials Total costs transferred out Costs of ending work in process EUP Cost per EUP Total cost Direct materials Total cost of ending work in process Total costs assigned

Explanation / Answer

1) Unit transferred out = 29000+380000-38000 = 371000

Equivalent unit of direct material = 371000+(38000*90%) = 405200

Equivalent unit of conversion = 371000+(38000*40%) = 386200

2) Cost per equivalent unit

Material = (49600+1206520)/405200 =$3.10

Conversion = (18500+908380)/386200 = $2.4

3) Cost reconciliation

Cost assignment and reconciliation Cost of units transferred out EUP Cost per EUP Total cost Direct material 371000 3.1 1150100 Conversion 371000 2.4 890400 Total costs transferred out 2040500 Cost of ending work in process EUP Cost per EUP Total cost Direct material 34200 3.1 106020 Conversion 15200 2.4 36480 Total cost of ending work in process 142500 Total cost assigned 2183000

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