Question
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
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, 80% complete as to materials and 20% complete as to conversion costs. The beginning inventory cost of $69,100 consisted of $50,200 of direct materials costs and $18,900 of conversion costs. During the month, the forming department started 390,000 units. At the end of the month, the forming department had 40,000 units in ending inventory, 80% complete as to materials and 30% complete as to conversion. Units completed in the forming department are transferred to the painting department. Cost information for the forming department follows.
Beginning work in process inventory | $ | 69,100 |
Direct materials added during the month | 1,507,160 | |
Conversion added during the month | 1,031,660 | |
1. Calculate the equivalent units of production for the forming department.
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2. Calculate the costs per equivalent unit of production for the forming department. (Round your answers to 2 decimal places.)
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3. Using the weighted-average method, assign costs to the forming departments outputspecifically, its units transferred to painting and its ending work in process inventory.
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Assume that Fields uses the FIFO method of process costing.
1. Calculate the equivalent units of production for the forming department.
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2. Calculate the costs per equivalent unit of production for the forming department. (Round your answers to 2 decimal places.)
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