Help Sav Required information Use the following information for the Exercises be
ID: 2339704 • Letter: H
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Help Sav Required information Use the following information for the Exercises below. [The following information applies to the questions displayed below The Fields Company has two manutacturing departments, forming and painting. The company uses the weighted-average method of process costing. At the beginning of the mnonth, the forming department has 33,000 units in inventory, 65% complete as to materials and 35% complete as to conversion costs. The beginning inventory cost of $76,100 consisted of $54,400 of direct materials costs and $21,700 of conversion costs. During the month, the forming department started 460,000 units. At the end of the month, the forming department had 40,000 units in ending inventory, 85% complete as to materials and 45% 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 $76,100 1,708,540 1,132,250 ercise 16-6 Weighted average: Cost per EUP and costs assigned to output LO C2 i Prev 1 of 5 Next >Explanation / Answer
(1) Equivalent Units of Forming Department :-
Direct Material
Conversion
Beginning WIP Inventory
33000
33000
Started & completed during the month
420000
420000
Ending WIP Inventory
(40000 * 85%)
=34000
(40000 * 45%)
=18000
Equivalent Units
487000
471000
(2) Cost per Equivalent Unit :-
Direct Material
Conversion
Cost incurred during the month
1708540
1132250
(+) Cost incurred on Beginning WIP
54400
21700
Total (A)
1762940
1153950
Equivalent Units (B)
487000
471000
Cost per Equivalent unit (A/B)
3.62
2.45
(3)
Cost Assignment & Reconciliation
Cost of Units Transferred out
EUP
Cost per EUP
Total Cost
Direct Materials
453000
3.62
1639860
Conversion
453000
2.45
1109850
Total costs transferred out
2749710
Cost of Ending WIP
EUP
Cost per EUP
Total Cost
Direct Materials
34000
3.62
123080
Conversion
18000
2.45
44100
Total cost of Ending WIP
167180
Total Cost assigned
2916890
Direct Material
Conversion
Beginning WIP Inventory
33000
33000
Started & completed during the month
420000
420000
Ending WIP Inventory
(40000 * 85%)
=34000
(40000 * 45%)
=18000
Equivalent Units
487000
471000
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