Question

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 25,000 units in inventory, 60% complete as to materials and 40% complete as to conversion costs. The beginning inventory cost of $60,100 consisted of $44,800 of direct materials costs and $15,300 of conversion costs. During the month, the forming department started 300,000 units. At the end of the month, the forming department had 30,000 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 follows. Beginning work in process inventory$60,100 Direct materials added during the month 1,231,200 Conversion added during the month 896,700 Exercise 03-7A FIFO: Costs per EUP LO C4 Assume that Fields uses the FIFO method of process costing. 1. Calculate the equivalent units of production for the forming department. 2. Calculate the costs per equivalent unit of production for the forming departmen

Answer 1

Fields Company

Forming Department

Materials Conversion

1. The equivalent units of production 304,000 294,000

2. The costs per equivalent unit $4.05 $3.05

Step-by-step explanation:

a) Data and Calculations:

Units Materials Conversion

Work in Process 25,000 60% 40%

Units started 300,000

Ending WIP 30,000 80% 30%

Units completed 295,000 100% 100%

Equivalent Units:

Units Materials Conversion

Work in Process 25,000 10,000 (40%) 15,000 (60%)

Units started 300,000

Ending WIP 30,000 24,000 (80%) 9,000 (30%)

Units completed 295,000 100% 100%

Units started and

completed 270,000 270,000 270,000

Total equivalent units 304,000 294,000

Units Materials Conversion Total

Costs added during the month $1,231,200 $896,700 $2,127,900

Total equivalent units 304,000 294,000

Cost per equivalent unit $4.05 $3.05