The Fields Company has two manufactiing departments, forming and painting. The c

Question

The Fields Company has two manufactiing departments, forming and painting. The company uses the weighted-average method of process tosting. At the beg j of the month, the forming department has 36,000 units in inventory, 70% complete as to materials and 30% complete as to conversion costs. The beginning inventory cost of $82100 consisted of $58,000 of direct materials costs and $24,100 of conversion costs. the month, the forming department started 520,000 units. At the end of the month, the forming department had 40,000 units in ending inventory, 85% complete as to materials and 35% complete as to conversion. Units completed in the f 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 $ 82,100e 1,889,000 1,226,700

Explanation / Answer

UNITS TO ACCOUNT FOR: Beginning Work in Process units 36,000 Add: Units Started in Process 520,000 Total Units to account for: 556,000 UNITS TO BE ACCOUNTED FOR: Units started and completed 516,000 Ending Work in Process 40,000 Total Units to be accounted for: 556,000 Equivalent Units: Material Cost Conversion % Completion Units % Completion Units Units started and completed 100% 516,000 100% 516,000 Ending Work in Process 85% 34,000 35% 14,000 Total Equivalent units 550,000 530,000 TOTAL COST TO ACCOUNT FOR: Material Conversion Beginning work in Process 58,000 24,100 Cost Added during May 1,889,000 1,226,700 Total Cost to account for: 1,947,000 1,250,800 Total Cost to account for: 3,197,800 COST PER EQUIVALENT UNIT: Material Conversion Total cost added during the year 1,947,000 1,250,800 Equivalent Units 550,000 530,000 Cost per Equivalent unit 3.54 2.36 TOTAL COST ACCOUNTED FOR: Units started and Transferred out (516000 units) Equivalent unit Cost per EU Total Cost Material 516,000 3.54 1826640 Conversion Cost 516,000 2.36 1217760 Total Cost of Units completed and transferred out: 3044400 Ending Work in process (40,000 units) Equivalent unit Cost per EU Total Cost Material 34,000 3.54 120360 Conversison Cost 14,000 2.36 33040 Total cost of Ending Work in process: 153,400 Req 1. Equiv. Units Direct Material 550000 Direct Labour 530000 Req 2. Cost per EUP Direct Material 3.54 Direct Labour 2.36 Req 3. TOTAL COST ACCOUNTED FOR: Units started and Transferred out (516000 units) Equivalent unit Cost per EU Total Cost Material 516,000 3.54 1826640 Conversion Cost 516,000 2.36 1217760 Total Cost of Units completed and transferred out: 3044400 Ending Work in process (40,000 units) Equivalent unit Cost per EU Total Cost Material 34,000 3.54 120360 Conversison Cost 14,000 2.36 33040 Total cost of Ending Work in process: 153,400 Total cost assigned 3,197,800

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