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 29,000 units in inventory, 75% complete as to materials and 25% complete as to conversion costs. The beginning inventory cost of $68,100 consisted of $49,600 of direct material costs and $18,500 of conversion cost. During the month, the forming department started 380,000 units. At the end of the month, the forming department had 38,000 units in ending inventory, 90% 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 $ 68,100 Direct materials added during the month 1,206,520 Conversion added during the month 908,3801. 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 answer to 2 decimal places.)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. (Round your "costs per equivalent unit" to two decimal places and use the rounded answer in further computations.)

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Answer:

The Fields Company

                           Units          % of Completion            Equivalent Units

                                                Mat.      C. Costs          Mat.     C. Costs

Beginning Inv.  29000           75              25             21750       7250

Units started  380,000                                          380,000       380,000

Less Ending

Units              38000               90             40         34200         15200        

Equivalent Units 371,000                                     367,550       372,050

1) Equivalent units of production for the forming department.

Materials = 367,550   Conversion costs 372,050

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

Materials =  $1,206,520 /367,550= 3.2826= 3.283= $3.28

Conversion costs= $908,3801./ 372,050= $ 24.4155=  $24.42

3)Ending Work In Process Inventory Costs =$ 112176+$ 371116.18= $ 483,292.18

Materials =  34200 *  $3.28= $ 112176

Conversion Costs = 15200*$24.42= $ 371116.18

Costs Transferred from Forming Department $ 9875,128.82

Beginning work in process inventory $ 68,100

Add Direct materials Costs$ 1,206,520

Add Conversion Costs 908,3801.

Total                       10358,421

Less Ending WIP   483,292.18

Costs Transferred $ 9875,128.82