Question
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 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 29,000 units in inventory, 75% complete as to materials and 25% complete as to conversion costs. The beginning inventory cost of $68,100 consisted of $49,600 of direct materials costs and $18,500 of conversion costs. During the month, the forming department started 380,000 units. At the end of the month, the forming department had 30,000 units in ending inventory, 90% complete as to materials and 50% 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 | $ | 68,100 |
Direct materials added during the month | 1,468,840 | |
Conversion added during the month | 1,013,780 | |
1. Calculate the equivalent units of production for the forming department.
Direct Materials | |
Conversion |
2. Calculate the costs per equivalent unit of production for the forming department.
Direct Materials | per EUP | |
Conversion | per EUP |
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.
Cost Assignment and Reconciliation | ||||
Cost of units transferred out | EUP | Cost per EUP | Total cost | |
Direct materials | ||||
Conversion | ||||
Total costs transferred out | ||||
Costs of ending work in process | EUP | Cost per EUP | Total cost | |
Direct materials | $0.00 | 0.00 | ||
Conversion | $0.00 | 0.00 | ||
Total cost of ending work in process | ||||
Total costs assigned |
2).
The Carlberg Company has two manufacturing departments, assembly and painting. The assembly department started 12,400 units during November. The following production activity unit and cost information refers to the assembly departments November production activities.
Assembly Department | Units | Percent of Direct Materials Added | Percent of Conversion Added | ||||||
Beginning work in process | 3,000 | 60 | % | 40 | % | ||||
Units transferred out | 10,000 | 100 | % | 100 | % | ||||
Ending work in process | 5,400 | 80 | % | 30 | % | ||||
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