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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 27,000 units in inventory, 70% complete as to materials and 30% complete as to conversion costs. The beginning inventory cost of $56,100 consisted of $40,000 of direct materials costs and $16,100 of conversion costs.

During the month, the forming department started 320,000 units. At the end of the month, the forming department had 35,000 units in ending inventory, 80% 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	$	62,100
Direct materials added during the month		1,660,000
Conversion added during the month		929,300

Assume that Fields uses the FIFO method of process costing.

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. (Round your answers to 2 decimal places.)

	Direct Materials per EUP Conversion per EUP

Answer 1

UNITS TO ACCOUNT FOR:
Beginning Work in Process units				27,000
Add: Units Started in Process				320,000
Total Units to account for:				347,000
UNITS TO BE ACCOUNTED FOR:
Units completed from Beginning WIP				27000
Units started and completed				285,000
Ending Work in Process				35,000
Total Units to be accounted for:				347,000
Equivalent Units:
			Material Cost		Conversion
			% Completion	Units	% Completion	Units
Units completed from Beg. WIP			30%	8,100	70%	18,900
Units started and completed			100%	285,000	100%	285,000
Ending Work in Process			80%	28,000	40%	14,000
Total Equivalent units				321,100		317,900
COST PER EQUIVALENT UNIT:
			Material		Conversion
Total cost added during the year			1,660,000		929,300
Equivalent Units			321,100		317,900
Cost per Equivalent unit			5.17		2.92