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 25,000 units in inventory, 60% complete as to materials and 40% complete as to conversion costs. The beginning inventory cost of $60,100 consisted of $44,800 of direct materials costs and $15,300 of conversion costs. During the month, the forming department started 300,000 units. At the end of the month, the forming department had 30,000 units in ending inventory, 80% complete as to materials and 30% 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$60,100Direct materials added during the month 1,231,200Conversion added during the month 896,700  Calculate the equivalent units of production for the forming department. Calculate the costs per equivalent unit of production for the forming department. 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.

Question
Asked Oct 23, 2019

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 25,000 units in inventory, 60% complete as to materials and 40% complete as to conversion costs. The beginning inventory cost of $60,100 consisted of $44,800 of direct materials costs and $15,300 of conversion costs.
 
During the month, the forming department started 300,000 units. At the end of the month, the forming department had 30,000 units in ending inventory, 80% complete as to materials and 30% 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

$

60,100

Direct materials added during the month

 

1,231,200

Conversion added during the month

 

896,700

 

 

  1. Calculate the equivalent units of production for the forming department.

 

  1. Calculate the costs per equivalent unit of production for the forming department.

 

  1. 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.
check_circleExpert Solution
Step 1

Requirements are solved in ...

A
C
E
1
Physical units
25000
300000
B3+ B4
Physical units
D5-D4
30000
-B5
2
Units Completed
Ending units
3 Beginning units
4 Units Started
5 Total units
Total units
6
Equivalent units of production
7
Direct Material
Conversion Cost
Physical units
8
9 Units Completed
10 Ending units
-D3
-D4
1
1
-B9 E9
0.3B10 E10
-B9*C9
B10 C10
0.8
11 Equivalent units
=B9+B10
|=F9+F10
D9+D10
12
13 2
Cost per equivalent unit
14
Direct Material Conversion Cost
Total
15
44800
=B16+ C16
-B17+C17
16 Beginning WIP
17 Cost during the month 1231200
18 Total cost
19 Equivalent units
20 Cost per unit
15300
896700
-B16+ B17
=D11
-B18/ B19
C16+C17
-B18+C18
=F11
-C18 / C19
B20+C20
21
22 3
Cost assigned to units transferred and eding work in process
Direct Material Conversion Cost
23
Particulars
Total
24
-D9*B20
=D10 B20
-F9*C20
-F10 C20
-B25+C25
-B26+ C26
25 Completed
26 Ending inventory
Total cost accounted
-B25+B26
-D25+D26
27 for
-C25+C26
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A C E 1 Physical units 25000 300000 B3+ B4 Physical units D5-D4 30000 -B5 2 Units Completed Ending units 3 Beginning units 4 Units Started 5 Total units Total units 6 Equivalent units of production 7 Direct Material Conversion Cost Physical units 8 9 Units Completed 10 Ending units -D3 -D4 1 1 -B9 E9 0.3B10 E10 -B9*C9 B10 C10 0.8 11 Equivalent units =B9+B10 |=F9+F10 D9+D10 12 13 2 Cost per equivalent unit 14 Direct Material Conversion Cost Total 15 44800 =B16+ C16 -B17+C17 16 Beginning WIP 17 Cost during the month 1231200 18 Total cost 19 Equivalent units 20 Cost per unit 15300 896700 -B16+ B17 =D11 -B18/ B19 C16+C17 -B18+C18 =F11 -C18 / C19 B20+C20 21 22 3 Cost assigned to units transferred and eding work in process Direct Material Conversion Cost 23 Particulars Total 24 -D9*B20 =D10 B20 -F9*C20 -F10 C20 -B25+C25 -B26+ C26 25 Completed 26 Ending inventory Total cost accounted -B25+B26 -D25+D26 27 for -C25+C26

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