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 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 materials 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 painting department.

Cost information for the forming department is as follows:

Exercise 20-6 Weighted average: Cost per EUP and costs assigned to output LO C2

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 $ 70,100 Direct materials added during the month 1,539,200 Conversion added during the month 1,047,260

Explanation / Answer

Beginning work in process 30,000 Completed & Transferrred 390,000 started during the year 400,000 Ending work in process 40,000 units to be accounted 430,000 units accounted for 430,000 Equivalent units units % materials % CC completed & transferred 390,000 100% 390,000 100% 390,000 ending work in process 40,000 85% 34000 35% 14000 Equivalent units 424,000 404,000 1 Equivalent units Materials 424,000 Conversion 404,000 cost per equivalent units Materials CC total beginning work in process 50,800 19,300 70,100 cost added during the year 1,539,200 1,047,260 2,586,460 total cost 1,590,000 1,066,560 2,656,560 Equilvalent units 424,000 404,000 cost per unit 3.75 2.64 6.39 2) cost per Equivalent units materials 3.75 Conversion 2.64 3) cost Assignment and Reconciliation cost of units transferred out EUP per EUP total direct materials 390,000 3.75 1462500 conversion 390,000 2.64 1029600 total costs transferred out 2492100 cost of ending work in process Direct materials 34000 3.75 127500 conversion 14000 2.64 36960 total cost of ending work in process 164460 total costs assinged 2656560

Related Questions

Navigate

• Browse (All)
• Browse T
• Subjects

---

---

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