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 29,500 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 material costs and $18,900 of conversion cost.

During the month, the forming department started 390,000 units. At the end of the month, the forming department had 39,000 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	$	69,100
Direct materials added during the month		1,267,240
Conversion added during the month		961,600

  

1.	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.)

Explanation:

1.

Equivalent Units of Production—Weighted Average	Direct Materials			Conversion
Units completed & transferred out (380,500 × 100%)		380,500			380,500
Units of ending work in process
Direct materials (39,000 × 80%)		31,200
Conversion (39,000 × 30%)					11,700
Equivalent units of production		411,700			392,200

2.

Cost per Equivalent Unit—Weighted Average	Direct Materials			Conversion
Costs of beginning work in process	$	50,200		$	18,900
Costs incurred this period		1,267,240			961,600
Total costs	$	1,317,440			980,500
÷ Equivalent units of production (from part 1)		411,700			392,200
Cost per equivalent unit of production	$	3.20	per EUP	$	2.50	per EUP

3.

Cost assignment—Weighted average
Costs of units transferred out
Direct materials (380,500 EUP × $3.20 per EUP)	$	1,217,600
Conversion (380,500 EUP × $2.50 per EUP)		951,250
Total costs transferred out			$	2,168,850
Costs of ending work in process
Direct materials (31,200 EUP × $3.20 per EUP)		99,840
Conversion costs (11,700 EUP × $2.50 per EUP)		29,250
Total costs of ending work in process				129,090
Total costs assigned			$	2,297,940

Equals costs to account for of $2,297,940, computed as $69,100 + $1,267,240 + $961,600