Required information
Use the following information for the Exercises below.
[The following information applies to the questionsdisplayed below.]
The Fields Company has two manufacturing departments, forming andpainting. The company uses the weighted-average method of processcosting. At the beginning of the month, the forming department has30,000 units in inventory, 60% complete as to materials and 40%complete as to conversion costs. The beginning inventory cost of$75,100 consisted of $53,800 of direct materials costs and $21,300of conversion costs.
During the month, the forming department started 450,000 units. Atthe end of the month, the forming department had 35,000 units inending inventory, 80% complete as to materials and 40% complete asto conversion. Units completed in the forming department aretransferred to the painting department.
Cost information for the forming department is asfollows:
| | |
| Beginning work in process inventory | $ | 75,100 |
| Direct materials added during the month | | 1,677,380 |
| Conversion added during the month | | 1,121,610 |
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Exercise 16-6 Weighted average: Cost per EUP and costs assignedto output LO C2
1.
Calculate the equivalent units of production for the formingdepartment.
2.
Calculate the costs per equivalent unit of production for theforming department.
3.
Using the weighted-average method, assign costs to the formingdepartment’s output—specifically, its units transferred to paintingand its ending work in process inventory.
