Question

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 had 40,000 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 follows.

Beginning work in process inventory	$	78,100
Direct materials added during the month		1,771,060
Conversion added during the month		1,163,340

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

1)

Direct Materials
Conversion

2)

Direct Materials	_ per EUP
Conversion	_per EUP

3)

Cost assignment and reconciliation:	EUP	Cost per EUP	Total cost
Cost of units transferred out:
Direct materials
Conversion
Total costs transferred out
Costs of ending work in process:	EUP	Cost per EUP	Total cost
Direct materials
Conversion
Total cost of ending work in process
Total costs assigned

Answer 1