Question

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, 80% complete as to materials and 20% complete as to conversion costs. The beginning inventory cost of $69,100 consisted of $50,200 of direct materials costs and $18,900 of conversion costs.

During the month, the forming department started 390,000 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.

Beginning work in process inventory	$	69,100
Direct materials added during the month		1,507,160
Conversion added during the month		1,031,660

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

direct material
conversion

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

direct material
conversion

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 of units transferred out	EUP	cost per EUP	total costs
direct material
conversion
total costs transferred out
cost of ending work in process	EUP	cost per EUP	Total costs
Direct materials		$0.00	$0.00
Conversion		$0.00	$0.00
Total costs of ending work in process
Total costs assigned

Answer 1

1- Calculate the equivalent units of production for the forming department.
direct material	412000
conversion	392000
2-Calculate the costs per equivalent unit of production for the forming department.
direct material	$3.78
conversion	$2.68
3
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 of units transferred out	EUP	cost per EUP	total costs
direct material	380000	3.78	1436400
conversion	380000	2.68	1018400
total costs transferred out				2454800
cost of ending work in process	EUP	cost per EUP	Total costs
Direct materials	32000	$3.78	$120,960.00
Conversion	12000	$2.68	$32,160.00
Total costs of ending work in process				$153,120.00
Total costs assigned				$2,607,920.00
Explaination
1)
Equivalent units of production	Direct material	Conversion
units completed and transferred out (380000*100%)	380000	380000
Units of ending work in progress (40000*80%)	32000
Direct material(40000*30%)		12000
	412000	392000
2)
Cost per equivalent unit	Direct material	Conversion
	50200	18900
Cost incurred this period	1507160	1031660
	1557360	1050560
Divided by equivalent units of production	412000	392000
Cost of equivalent unit of production	3.78	2.68