Required information [The following information applies to the questions display

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Required information

[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 $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:

Assume that Fields uses the FIFO method of process costing.

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 answers to 2 decimal places.)

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

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 answers to 2 decimal places.)

Physical unit % material % conversion cost Beginning work in process 30000 40% 12000 60% 18000 Unit started and complete 360000 100% 360000 100% 360000 Ending work in process 40000 85% 34000 35% 14000 Equivalent unit of production 406000 392000

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