The Fields Company has two manufacturing departments, forming and painting. The
ID: 2482033 • Letter: T
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 29,000 units in inventory, 75% complete as to materials and 25% complete as to conversion costs. The beginning inventory cost of $68,100 consisted of $49,600 of direct material costs and $18,500 of conversion cost. During the month, the forming department started 380,000 units. At the end of the month, the forming department had 38,000 units in ending inventory, 90% 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 $ 68,100 Direct materials added during the month 1,206,520 Conversion added during the month 908,380
Calculate the costs per equivalent unit of production for the forming department. (Round your answer to 2 decimal places.)
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. (Round your "costs per equivalent unit" to two decimal places and use the rounded answer in further computations.)
1. Calculate the equivalent units of production for the forming department. 2.Calculate the costs per equivalent unit of production for the forming department. (Round your answer to 2 decimal places.)
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. (Round your "costs per equivalent unit" to two decimal places and use the rounded answer in further computations.)
Explanation / Answer
Answer
Answer 1
Statement of equivalent units (Weighted average method)
Particulars
Output
Material
Conversion costs
Opening
29000
%
Units
%
Units
Input
380000
Units Completed and transferred to next process
371000
100%
371000
100%
371000
409000
(409000-38000)
Closing stock
38000
90%
34200
40%
15200
409000
405200
386200
Answer 2
statement of cost per Equivalent units of production
Figures in $
Particulars
Cost
Equivalent units
Cost per unit
A
B
A/B
Material
1256120
405200
3.1
(49600+1206520)
Conversion cost
926880
386200
2.4
(18500+908380)
Total
5.5
Answer 3
Statement of cost assignment
Figures in $
Particulars
Amount
Units completed and transferred to next process
2040500
(371000*5.5)
Closing work in process
Material (34200*3.1)
106020
Conversion Cost (15200*2.4)
36480
142500
Total cost
2183000
Statement of equivalent units (Weighted average method)
Particulars
Output
Material
Conversion costs
Opening
29000
%
Units
%
Units
Input
380000
Units Completed and transferred to next process
371000
100%
371000
100%
371000
409000
(409000-38000)
Closing stock
38000
90%
34200
40%
15200
409000
405200
386200
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