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
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 27,000 units in inventory, 70% complete as to materials and 30% complete as to conversion costs. The beginning inventory cost of $56,100 consisted of $40,000 of direct materials costs and $16,100 of conversion costs. During the month, the forming department started 320,000 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 | $ | 62,100 |
Direct materials added during the month | 1,660,000 | |
Conversion added during the month | 929,300 | |
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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