Fields Company has two manufacturing departments, forming and painting. The company uses the weighted-average method of process costing.

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, 65% complete as to materials and 35% complete as to conversion costs. The beginning inventory cost of $61,000 consisted of $45,000 of direct materials costs and $16,000 of conversion costs. During the month, the forming department started 300,000 units. At the end of the month, the forming department had 35,000 units in ending inventory, 90% complete as to materials and 20% 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 $ 61,000Direct materials added during the month 1,261,000Conversion added during the month 890,0001. 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 departmentâs outputâspecifically, its units transferred to painting and its ending work in process inventory.

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Answer

.Calculate the equivalent units of production for the forming department Equivalent units of production 468,000 448,000 Explanation: 1. Direct Materials 468,000 Conversion 448,000 Explanation: Equivalent Units of Production—Weighted Average Direct Materials Conversion Units completed & transferred out (432,000 × 100%) 432,000 432,000 Units of ending work in process Direct materials (40,000 × 90%) 36,000 Conversion (40,000 × 40%) 16,000 Equivalent units of production 468,000 448,000

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