Martin Manufacturing has two manufacturing departments, Forming and Painting. The company uses the weighted-average method and it reports thefollowing data. Units completed in the Forming department are transferred to the Painting department.Beginning work in process inventoryUnits started this periodBeginning work in processDirect materialsConversionCosts added this periodDirect materialsConversion1,200,0001,180,000120,000Units completed and transferred outEnding work in process inventoryProduction cost information for the Forming department follows.Units100,000$ 179,20061,200$ 4,924,8003,586,800Direct materialsPercent Complete$ 240,4008,511,60060%80%Conversion PercentComplete40%30%Calculate the costs per equivalent unit of production for both direct materials and conversion for the Forming department.

The weighted average method of equivalent units is a cost accounting technique used to allocate…

Answered: Calculate the costs per equivalent unit…

Calculate the costs per equivalent unit of production for both direct materials and conversion for the Forming department.

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter3: Process Cost Systems

Section: Chapter Questions

Problem 5E: The Converting Department of Worley Company had 2,400 units in work in process at the beginning of...

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Concept explainers

Manufacturing Costs

Manufacturing cost is the total cost of procuring or producing a product. In other words, the manufacturing cost is the cost that an individual or business owner undertakes for the manufacturing of goods.

Question

Martin Manufacturing has two manufacturing departments, Forming and Painting. The company uses the weighted-average method and it reports the
following data. Units completed in the Forming department are transferred to the Painting department.
Beginning work in process inventory
Units started this period
Beginning work in process
Direct materials
Conversion
Costs added this period
Direct materials
Conversion
1,200,000
1,180,000
120,000
Units completed and transferred out
Ending work in process inventory
Production cost information for the Forming department follows.
Units
100,000
$ 179,200
61,200
$ 4,924,800
3,586,800
Direct materials
Percent Complete
$ 240,400
8,511,600
60%
80%
Conversion Percent
Complete
40%
30%
Calculate the costs per equivalent unit of production for both direct materials and conversion for the Forming department.

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