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 26,000 units in inventory, 75% complete as to materials and 25% complete as to conversion costs. The beginning inventory cost of $63,100 consisted of $46,600 of direct materials costs and $16,500 of conversion costs.

During the month, the forming department started 327,000 units. At the end of the month, the forming department had 40,000 units in ending inventory, 80% complete as to materials and 30% 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:

Explanation / Answer

Field Company Physical Units of Production Units to be accounted for Beginning WIP 26000 Units started into Production 327000 Total Units 353000 Units accounted for Units transferred out(353000-40000) 313000 Units in Ending WIP 40000 Weighted Average Method Material Conversion 1) Units completed and transferred to next department 313000 313000 Ending WIP(40000 units 80% complete) with respect to Material and (40000*30% complete ) with respect to conversion 32000 12000 Equivalent Units of Prodcution 345000 325000 Cost per Equivalent Units 2) Material Conversion Total Cost of WIP Inventory $       46,600.00 $              16,500.00 Cost added during the period $ 13,33,400.00 $          9,39,000.00 Total Cost=(A) $ 13,80,000.00 $          9,55,500.00 Equivalent Units of Production=(B) 345000 325000 Cost per Equivalent Units=(A)/(B) $                  4.00 $                        2.94 $                  6.94 Total Cost Assigned Cost of Beginning WIP $       63,100.00 Direct Material added during the month $ 13,33,400.00 Conversion Cost added during the month $    9,39,000.00 Total Cost Assigned $ 23,35,500.00 Cost Assigned and reconciliation EUP Cost per Equivalent Units Total Cost Cost of Units transferred Out Material $    3,13,000.00 $                        4.00 $ 12,52,000.00 Conversion $    3,13,000.00 $                        2.94 $    9,20,220.00 Total cost Transferred Out $ 21,72,220.00 (A) Cost of Ending WIP Direct Material $       32,000.00 $                        4.00 $    1,28,000.00 Conversion $       12,000.00 $                        2.94 $       35,280.00 Total Cost of Ending WIP $    1,63,280.00 (B) Total Cost Assigned=(A)+(B) $ 23,35,500.00

Related Questions

Navigate

• Browse (All)
• Browse T
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.