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 27,000 units in inventory, 65% complete as to materials and 35% complete as to conversion costs. The beginning inventory cost of $66100 consisted of $48,400 of direct materials costs and $17,700 of conversion costs. During the month, the forming department started 360,000 units. At the end of the month, the forming department had 35,000 units in ending inventory, 80% 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 $ 66,100 1,410,800 985,140

Explanation / Answer

Physical Units Direct material Conversion Units Completed 352000 352000 352000 Ending Inventory 35000 28000 14000 Total Equivalent Units 387000 380000 366000 Total Equivalent Units Direct material 380000 Conversion 366000 Direct material Conversion Total Beginning WIP Cost 48400 17700 66100 Cost of Material Added during the Period 1410800 985140 2395940 Total Cost 1459200 1002840 2462040 Total Equivalent Units 380000 366000 Cost Per EUP 3.84 2.74 Direct material 3.84 Cost Per EUP Conversion 2.74 Cost Per EUP EUP Cost Per EUP Total Cost Cost of Units transferred out Direct Material 352000 3.84 1351680 Conversion 352000 2.74 964480 Total Cost transferred out 2316160 Cost of Ending WIP Direct material 28000 3.84 107520 Conversion 14000 2.74 38360 Total Cost of Ending WIP 145880 Total Cost Assigned 2462040

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