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Required information The following information applies to the questions displaye

ID: 2585120 • Letter: R

Question

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 he beginning of the month, the forming department has 27,000 units in inventory, 65% complete as to materials and 35% complete as to conversion costs. The beginning inventory cost of $661 consisted of $48,400 of direct materials costs and $17.700 of conversion costs. During the month, the forming department started 360.000 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: Beginning work in process inventory Direct materials added during the month Conversion added during the month 66,100 1,410,800 985,140 Assume that Fields uses the FIFO method of process costing 1. Calculate the equivalent units of production for the forming department. Direct Materials Conversion K Pre15 of 17l Next>

Explanation / Answer

Weighted average method Statement of Equivalent production Particulars Direct Materials %completion Equivalent mat Conversion %completion Equivalent Conv Opening WIP              27,000.00 100%                 27,000.00              27,000.00 100%                 27,000.00 Units started and completed = 360,000 - 35,000            325,000.00 100%               325,000.00            325,000.00 100%               325,000.00 ending WIP              35,000.00 80%                 28,000.00              35,000.00 40%                 14,000.00 Equivalent Units               380,000.00               366,000.00 Opening WIP Costs                 48,400.00                 17,700.00 Current Month Costs           1,410,800.00               985,140.00 Total costs           1,459,200.00           1,002,840.00 Cost per Equivalent units                            3.84                            2.74

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