Question
[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
[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 28,000 units in inventory, 70% complete as to materials and 30% complete as to conversion costs. The beginning inventory cost of $67,100 consisted of $49,000 of direct materials costs and $18,100 of conversion costs. During the month, the forming department started 370,000 units. At the end of the month, the forming department had 40,000 units in ending inventory, 85% complete as to materials and 45% 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 | $ | 67,100 | ||||||||||||||||||||
Direct materials added during the month | 1,440,600 | |||||||||||||||||||||
Conversion added during the month | 997,100 | |||||||||||||||||||||
1. Calculate the equivalent units of production for the forming department.
2. Calculate the costs per equivalent unit of production for the forming department.
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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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