Fields Company has two manufacturing departments, Forming and Painting. The company uses the weighted average method and reports the following unit data for the Forming department. Units completed in the Forming department are transferred to the Painting department. Direct Materials Conversion Beginning work in process inventory Units 25,000 Percent Percent Complete Complete 60% 40% Units started this period 300,000 Completed and transferred out 295,000 Ending work in process inventory 30,000 80% 30% Production cost Information for the Forming department follows: Beginning work in process Direct materials Conversion Costs added this period Direct materials Conversion Total costs to account for Required: $ 44,800 15,300 $ 60,100 1,231,200 896,700 2,127,900 $ 2,188,000 a. Calculate the equivalent units of production for both direct materials and conversion for the Forming department. b. Calculate the costs per equivalent unit of production for both direct materials and conversion for the Forming department. c. Using the weighted average method, assign costs to the Forming department's output-specifically, its units transferred to Painting and its ending work in process Inventory. Navigation: 1. Use the Open Excel In New Tab button to launch this question. 2. When finished in Excel, use the Save and Return to Assignment button in the lower right to return to Connect.
Fields Company has two manufacturing departments, Forming and Painting. The company uses the weighted average method and reports the following unit data for the Forming department. Units completed in the Forming department are transferred to the Painting department. Direct Materials Conversion Beginning work in process inventory Units 25,000 Percent Percent Complete Complete 60% 40% Units started this period 300,000 Completed and transferred out 295,000 Ending work in process inventory 30,000 80% 30% Production cost Information for the Forming department follows: Beginning work in process Direct materials Conversion Costs added this period Direct materials Conversion Total costs to account for Required: $ 44,800 15,300 $ 60,100 1,231,200 896,700 2,127,900 $ 2,188,000 a. Calculate the equivalent units of production for both direct materials and conversion for the Forming department. b. Calculate the costs per equivalent unit of production for both direct materials and conversion for the Forming department. c. Using the weighted average method, assign costs to the Forming department's output-specifically, its units transferred to Painting and its ending work in process Inventory. Navigation: 1. Use the Open Excel In New Tab button to launch this question. 2. When finished in Excel, use the Save and Return to Assignment button in the lower right to return to Connect.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Concept explainers
Process Costing
Process costing is a sort of operation costing which is employed to determine the value of a product at each process or stage of producing process, applicable where goods produced from a series of continuous operations or procedure.
Job Costing
Job costing is adhesive costs of each and every job involved in the production processes. It is an accounting measure. It is a method which determines the cost of specific jobs, which are performed according to the consumer’s specifications. Job costing is possible only in businesses where the production is done as per the customer’s requirement. For example, some customers order to manufacture furniture as per their needs.
ABC Costing
Cost Accounting is a form of managerial accounting that helps the company in assessing the total variable cost so as to compute the cost of production. Cost accounting is generally used by the management so as to ensure better decision-making. In comparison to financial accounting, cost accounting has to follow a set standard ad can be used flexibly by the management as per their needs. The types of Cost Accounting include – Lean Accounting, Standard Costing, Marginal Costing and Activity Based Costing.
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Transcribed Image Text:Fields Company has two manufacturing departments, Forming and Painting. The company uses the weighted average method and
reports the following unit data for the Forming department. Units completed in the Forming department are transferred to the Painting
department.
Direct
Materials Conversion
Units
Beginning work in process inventory
25,000
Percent
Percent
Complete Complete
60%
40%
Units started this period
300,000
Completed and transferred out
295,000
Ending work in process inventory
30,000
80%
30%
Production cost Information for the Forming department follows:
Beginning work in process
Direct materials
Conversion
Costs added this period
Direct materials
Conversion
Total costs to account for
Required:
$ 44,800
15,300
$ 60,100
1,231,200
896,700
2,127,900
$ 2,188,000
a. Calculate the equivalent units of production for both direct materials and conversion for the Forming department.
b. Calculate the costs per equivalent unit of production for both direct materials and conversion for the Forming department.
c. Using the weighted average method, assign costs to the Forming department's output-specifically, its units transferred to
Painting and its ending work in process Inventory.
Navigation:
1. Use the Open Excel In New Tab button to launch this question.
2. When finished in Excel, use the Save and Return to Assignment button in the lower right to return to Connect.
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