[The following information applies to the questions displayed below.] The Fields

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[The following information applies to the questions displayed below.]

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 28,000 units in inventory, 70% complete as to materials and 30% complete as to conversion costs. The beginning inventory cost of $67,100 consisted of $49,000 of direct materials costs and $18,100 of conversion costs.

During the month, the forming department started 370,000 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:

1. Calculate the equivalent units of production for the forming department.

2. Calculate the costs per equivalent unit of production for the forming department.

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.

Beginning work in process inventory $ 67,100 Direct materials added during the month 1,440,600 Conversion added during the month 997,100

1. Calculate the equivalent units of production for the forming department.

Direct Materials Conversion

2. Calculate the costs per equivalent unit of production for the forming department.

Direct Materials per EUP Conversion per EUP

Explanation / Answer

1 Direct Materials Conversion Units completed and transferred 358000 358000 Ending inventory 34000 18000 Equivalent units of production 392000 376000 2 Direct Materials Conversion Total costs 1489600 1015200 Equivalent units of production 392000 376000 Costs per equivalent unit 3.8 2.7 3 Cost Assignment and Reconciliation Cost of units transferred out EUP Cost per EUP Total cost Direct materials 358,000 3.8 1360400 Conversion 358,000 2.7 966600 Total costs transferred out 2327000 Costs of ending work in process EUP Cost per EUP Total cost Direct materials 34000 3.8 129200 Conversion 18000 2.7 48600 Total cost of ending work in process 177800 Total costs assigned 2504800

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