Exercise 20-7A FIFO: Costs per EUP LO C4 Assurme that Fic cs uss he FIFO methad

Question

Exercise 20-7A FIFO: Costs per EUP LO C4 Assurme that Fic cs uss he FIFO methad of proces Use the following information for the Exercises below. The folowing information applies to the questions displayed beiow,) 1. Calcu ate the: squivalert units of prcduct on for the forrming departmient. 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% compete is to conversion costs. The beginning inventory cost af S75100 consisted of $53,900 of direct materials costs and $21,300 af conversion costs Cirect Malerials Corwaraion 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 end 40% complete as to conversion. Units completed in the forming department are transferred to the painting department earch Cost information for the forming department is as follows 2. Direct saterials added during tbe noeth Celculete the costs per equivalent unit of precuction for the foming department ,121,62 Dred Materials per ELP Exercise 20-6 Weighted average: Cost per EUP and costs assigned to output LO C2 Conversian por ELP Calculate the equilvalent units of production for the forming department 3. Using the weignted-average rethod, assign CDs s to the forming depar rnent's autput its endis wok In process inventory Direct Materas steelfica y its units transferred to priting tend Cust of urits ransferred cut EUP Cost per EUP Total cost Direal mgleriss Tctal coats transferned cut Costs of ending work in process EUP Cost per EUP Total cost 0.00 0.00 Tctal coat af ending work in process Total costs asgred

Explanation / Answer

UNITS TO ACCOUNT FOR: Beginning Work in Process units 30,000 Add: Units Started in Process 450,000 Total Units to account for: 480,000 UNITS TO BE ACCOUNTED FOR: Units started and completed 445,000 Ending Work in Process 35,000 Total Units to be accounted for: 480,000 Equivalent Units: Material Cost Conversion % Completion Units % Completion Units Units started and completed 100% 445,000 100% 445,000 Ending Work in Process 80% 28,000 40% 14,000 Total Equivalent units 473,000 459,000 Req 1 Eq. Units Direct material 473,000 Conversion 459,000 TOTAL COST TO ACCOUNT FOR: Material Conversion Beginning work in Process 53,800 21,300 Cost Added during May 1,677,380 1,121,610 Total Cost to account for: 1,731,180 1,142,910 Total Cost to account for: 2,874,090 COST PER EQUIVALENT UNIT: Material Conversion Total cost added during the year 1,731,180 1,142,910 Equivalent Units 473,000 459,000 Cost per Equivalent unit 3.66 2.49 Req 2 Cost per Eq. unt Material 3.66 Converion 2.49 Req 3 TOTAL COST ACCOUNTED FOR: Units started and Transferred out (445000 units) Equivalent unit Cost per EU Total Cost Material 445,000 3.66 1628700 Conversion Cost 445,000 2.49 1108050 Total Cost of Units completed and transferred out: 2736750 Ending Work in process (35,000 units) Equivalent unit Cost per EU Total Cost Material 28,000 3.66 102480 Conversison Cost 14,000 2.49 34860 Total cost of Ending Work in process: 137,340

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