Question

In: Accounting

The Fields Company has two manufacturing departments, forming and painting. The company uses the weighted-average method...

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 32,000 units in inventory, 65% complete as to materials and 35% complete as to conversion costs. The beginning inventory cost of $71,100 consisted of $51,400 of direct materials costs and $19,700 of conversion costs.

During the month, the forming department started 410,000 units. At the end of the month, the forming department had 30,000 units in ending inventory, 90% complete as to materials and 40% 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 $ 71,100
Direct materials added during the month 1,564,120
Conversion added during the month 1,061,500

Exercise 16-6 Weighted average: Cost per EUP and costs assigned to output LO C2

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 department’s output—specifically, 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

Solutions

Expert Solution

Solution 1:

Forming Department
Equivalent units of production (EUP) - Weighted Average method
Units % material EUP-Materials % Conversion EUP- Conversion
Units Completed and transferred out (410000+32000-30000) 412000 100% 412000 100% 412000
units of Ending work in process 30000 90% 27000 40% 12000
Equivalent units of production 439000 424000

Solution 2:

Cost per Equivalent unit: Material Conversion
Cost of Beginning Work in Process $51,400 $19,700
Cost added during June $15,64,120 $10,61,500
Total Costs $16,15,520 $10,81,200
/Equivalent units of Production 439000 424000
Cost per Equivalent unit of Production $3.68 $2.55

Solution 3:

Cost Assignment and reconciliation
Cost of Units Transferred Out EUP Cost per EUP Total Cost
Material 412000 $3.68 $15,16,160
Conversion 412000 $2.55 $10,50,600
Total transferred out $25,66,760
Cost of ending work in process EUP Cost per EUP Total Cost
Material 27000 $3.68 $99,360
Conversion 12000 $2.55 $30,600
Total Ending work in process $1,29,960
Total Costs assigned $26,96,720

Related Solutions

Fields Company has two manufacturing departments, forming and painting. The company uses the weighted-average method of...
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 34,000 units in inventory, 75% complete as to materials and 25% complete as to conversion costs. The beginning inventory cost of $78,100 consisted of $55,600 of direct materials costs and $22,500 of conversion costs. During the month, the forming department started 480,000 units. At the end of the month, the forming department...
Fields Company has two manufacturing departments, forming and painting. The company uses the weighted-average method of...
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 27,000 units in inventory, 80% complete as to materials and 20% complete as to conversion costs. The beginning inventory cost of $63,200 consisted of $47,200 of direct materials costs and $16,000 of conversion costs. During the month, the forming department started 339,000 units. At the end of the month, the forming department...
The Fields Company has two manufacturing departments, forming and painting. The company uses the weighted-average method...
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 32,000 units in inventory, 65% complete as to materials and 35% complete as to conversion costs. The beginning inventory cost of $71,100 consisted of $51,400 of direct materials costs and $19,700 of conversion costs. During the month, the forming department started 410,000 units. At the end of the month, the forming...
The Fields Company has two manufacturing departments, forming and painting. The company uses the weighted-average method...
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...
The Fields Company has two manufacturing departments, forming and painting. The company uses the weighted-average method...
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 37,000 units in inventory, 80% complete as to materials and 20% complete as to conversion costs. The beginning inventory cost of $84,100 consisted of $59,200 of direct materials costs and $24,900 of conversion costs. During the month, the forming department started 540,000 units. At the end of the month, the forming...
The Fields Company has two manufacturing departments, forming and painting. The company uses the weighted-average method...
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...
The Fields Company has two manufacturing departments, forming and painting. The company uses the weighted-average method...
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 30,000 units in inventory, 65% complete as to materials and 35% complete as to conversion costs. The beginning inventory cost of $61,000 consisted of $45,000 of direct materials costs and $16,000 of conversion costs. During the month, the forming department started 300,000 units. At the end of the month, the forming...
The Fields Company has two manufacturing departments, forming and painting. The company uses the weighted-average method...
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 34,000 units in inventory, 75% complete as to materials and 25% complete as to conversion costs. The beginning inventory cost of $78,100 consisted of $55,600 of direct materials costs and $22,500 of conversion costs. During the month, the forming department started 480,000 units. At the end of the month, the forming...
Fields Company has two manufacturing departments, forming and painting. The company uses the weighted-average method of...
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 33,000 units in inventory, 65% complete as to materials and 35% complete as to conversion costs. The beginning inventory cost of $76,100 consisted of $54,400 of direct materials costs and $21,700 of conversion costs. During the month, the forming department started 460,000 units. At the end of the month, the forming department...
The Fields Company has two manufacturing departments, forming and painting. The company uses the weighted-average method...
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 30,000 units in inventory, 60% complete as to materials and 40% complete as to conversion costs. The beginning inventory cost of $70,100 consisted of $50,800 of direct materials costs and $19,300 of conversion costs. During the month, the forming department started 400,000 units. At the end of the month, the forming...
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT