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 28,000 units in inventory, 70% complete as to materials and 30% complete as to conversion costs. The beginning inventory cost of $67,100 consisted of $49,000 of direct materials costs and $18,100 of conversion costs.
During the month, the forming department started 370,000 units. At the end of the month, the forming department had 40,000 units in ending inventory, 85% complete as to materials and 45% 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 $ 67,100
Direct materials added during the month 1,440,600
Conversion added during the month 997,100
1. Calculate the equivalent units of production for the forming department.
Direct Materials
Conversion
2. Calculate the costs per equivalent unit of production for the forming department.
Direct Materials per EUP
Conversion per EUP
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.
Cost Assignment and Reconciliation
Cost of units transferred out EUP Cost per EUP Total cost
Direct materials 361,000
Conversion 361,000
Total costs transferred out
Costs of ending work in process EUP Cost per EUP Total cost
Direct materials $0.00 0.00
Conversion $0.00 0.00
Total cost of ending work in process
Total costs assigned
