The Fields Company has two manufacturing departments, forming and painting. The

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The Fields Company has two manufacturing departments, forming and painting. The company uses the weighted-average method of process costing

Required information Use the following information for the Exercises below [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 33,000 units in inventory, 65% complete as to materials and 35% complete as to conversion costs. The beginning inventory cost of $76,100 consisted of $54,400 of direct materials costs and $21,700 of conversion costs. During the month, the forming department started 460,000 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 Beginning work in process inventory Direct materials added during the month Conversion added during the month $76,100 1,708,540 1,132,250 Exercise 16-6 Weighted average: Cost per EUP and costs assigned to output LO C2 Calculate the equivalent units of production for the forming department. Answer is complete but not entirely correct. 74,000 58,000 Direct Materials Conversion 2. Calculate the costs per equivalent unit of production for the forming department. per EUP per EUP Direct Materials Conversion

Explanation / Answer

Equivalent unit :

Cost per equivalent unit of material = (54400+1708540)/487000 = 3.62 per equivalent unit

Cost per equivalent unit of conversion = (21700+1132250)/471000 = 2.45 per equivalent unit

3. Prepare cost assignmet and reconciliation :

Physical unit % EUP-material % EUP-conversion Units completed 453000 100% 453000 100% 453000 Ending work in process 40000 85% 34000 45% 18000 Total 493000 487000 471000

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