[The following information applies to the questions displayed below.] The Fields
ID: 2538943 • Letter: #
Question
[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 30,000 units in inventory, 60% complete as to materials and 40% complete as to conversion costs. The beginning inventory cost of $75,100 consisted of $53,800 of direct materials costs and $21,300 of conversion costs.
During the month, the forming department started 450,000 units. At the end of the month, the forming department had 35,000 units in ending inventory, 80% 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:
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.
Explanation / Answer
Answer
Reconciliation of Units
Opening WIP
30000
Introduced
450000
TOTAL
480000
Transferred
445000
Closing WIP
35000
Statement of Equivalent Units
Material
Conversion Cost
Units
Complete %
Equivalent units
Complete %
Equivalent units
Transferred
445000
100%
445000
100%
445000
Closing WIP
35000
80%
28000
40%
14000
Total
480000
Total
473000
Total
459000
--Direct materials 473000 units
--Conversion 459000 units
Cost per Equivalent Units
COST
Material cost
Conversion cost
TOTAL
Opening + Current cost
1731180
1142910
2874090
Total Equivalent Units
473000
459000
Cost per Equivalent Units
$3.66
$2.49
$6.15
Direct material = $3.66 per EUP
Conversion = $2.49 per EUP
Working
Statement of cost
Cost
Cost/unit
Closing WIP
Transferred
Units
Cost Allocated
Units
Cost Allocated
Material
3.6600
28000
102480
445000
1628700
0
Conversion cost
2.4900
14000
34860
445000
1108050
0
0
TOTAL
$137340
TOTAL
$2736750
Cost Assignement and Reconciliation
Cost of Units transferred out
EUP
Cost per EUP
Total Cost
Direct Materials
445000
3.66
1628700
Conversion
445000
2.49
1108050
Total Cost transferred out
$2736750
Cost of ending Work In Progress
EUP
Cost per EUP
Total Cost
Direct materials
28000
3.66
102480
Conversion
14000
2.49
34860
Total cost of ending work in progress
$137340
Total cost assigned
$2,874,090
Reconciliation of Units
Opening WIP
30000
Introduced
450000
TOTAL
480000
Transferred
445000
Closing WIP
35000
Statement of Equivalent Units
Material
Conversion Cost
Units
Complete %
Equivalent units
Complete %
Equivalent units
Transferred
445000
100%
445000
100%
445000
Closing WIP
35000
80%
28000
40%
14000
Total
480000
Total
473000
Total
459000
Related Questions
drjack9650@gmail.com
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.