Fields Company has two manufacturing departments, forming and painting. The company uses the weighted average method and it reports the following unit data for the Forming department. Units completed in the forming department are transferred to the painting department.
Units Direct Materials Conversion
Percent Complete Percent Complete
Beginning work in process inventory 25,000 60% 40%
Units started this period 300,000
Completed and transferred out 295,000
Ending work in process inventory 30,000 80% 30%
Production cost information for the forming department follows.
Beginning work in process
Direct materials $ 44,800
Conversion 15,300 $ 60,100
Costs added this period
Direct materials 1,231,200
Conversion 896,700 2,127,900
Total costs to account for $ 2,188,000
a. Calculate the equivalent units of production for both direct materials and conversion for the forming department.
b. Calculate the costs per equivalent unit of production for both direct materials and conversion for the forming department.
c. 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.
