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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

Exercise 20-7A FIFO: Costs per EUP LO C4

Assume that Fields uses the FIFO method of process costing.

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

2. Calculate the costs per equivalent unit of production for the forming department. (Round your answers to 2 decimal places.)

Answer 1

REQUIREMENT 1 Calculation of Equivalent Units Quantities Physical Units % Completed EQ. Units Materials % Completed EQ. Units Conversion Costs Units to be Accounted For: Work-In-Process - Beginning 25000 Started into Production 300000 Total Units to Account For 325000 Units Accounted For Completed & Transferred Out Work-In-Process - Beginning 25000 0.40 10000 0.60 15000 Started & Completed 270000 1.00 270000 1.00 270000 Work-In-Process - Ending 30000 0.80 24000 0.30 9000 Total Units Accounted For 325000 304000 294000

REQUIREMENT 2 Calculation of Cost Per Equivalent Unit Materials Conversion Costs Total Costs Unit Costs Costs in March 1231200 896700.00 2127900.00 Equivalent Units 304000 294000.00 Cost per Equivalant Unit 4.05 3.05 7.10