Required Information [The following Information apples to the questions displaye

Question

Required Information [The following Information apples to the questions displayed below.j 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, thee forming department has 30,000 units in inventory, 60% complete as to materials and 40% complete as to conversion costs. The beginning inventory cost of $70,100 consisted of $50,800 of direct materlals costs and $19,300 of conversion costs. During the month, the forming department started 400,000 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 forming department are transferred to the palnting 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 $ 70,1e0 1,539,200 1,047,260 1. Calculate the equivalent units of production for the forming department. Direct Materials Conversion

Explanation / Answer

The equivalent units of production for the forming department. Particulars Direct Materials Conversion Total Cost Units % completion Equivalent Units Cost Units % completion Equivalent Units Cost Begining Work in Process inventory       30,000 60%          18,000        50,800      30,000 40%         12,000        19,300 Processed During the month: Units Started 4,00,000 Begining Work in Process inventory       30,000 40%          12,000      30,000 60%         18,000 Units Started & Completed in current month 3,60,000 100%      3,60,000 3,60,000 100%      3,60,000 Units Started & not Complete in current month       40,000 85%          34,000      40,000 35%         14,000 Equivalent units of processed during the current month      4,06,000      3,92,000 Total Equivalent Units      4,24,000 15,39,200      4,04,000 10,47,260 Total Cost of Production 15,90,000 10,66,560 26,56,560 Costs per equivalent unit of production (1,590,000/424,000) 3.75 (1,066,560/404,000) 2.64 Requirement 1 Materials Conversion Equivalent units of production 4,24,000            4,04,000 Requirement 2 Materials Conversion Costs per equivalent unit of production           3.75                     2.64 Requirement 3 Cost Assignment and Reconciliation Cost of units transferred out EUP Cost per EUP Total Cost    Direct materials 3,90,000 3.75    14,62,500    Conversion 3,90,000 2.64    10,29,600 Total costs transferred out    24,92,100 Costs of ending work in process EUP Cost per EUP Total Cost     Direct materials       34,000 3.75      1,27,500     Conversion       14,000 2.64          36,960 Total cost of ending work in process      1,64,460 Total costs assigned    26,56,560

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