Question: the fields company has two manufacturing departments forming and painting...
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 $22,500 of conversion costs.
During the month, the forming department started 480,000 units. At the end of the month, the forming department had 40,000 units in ending inventory, 80% complete as to materials and 30% complete as to conversion. Units completed in the forming department are transferred to the painting department.
Cost information for the forming department is as follows:
|Beginning work in process inventory||$||78,100|
|Direct materials added during the month||1,771,060|
|Conversion added during the month||1,163,340|
Calculate the equivalent units of production for the forming department.
Calculate the costs per equivalent unit of production for the forming department.
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.