The Fields Company has two manufacturing departments forming

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 26,000 units in inventory, 75% complete as to materials and 25% complete as to conversion costs. The beginning inventory cost of $63,100 consisted of $46,600 of direct materials costs and $16,500 of conversion costs.

During the month, the forming department started 327,000 units. At the end of the month, the forming department had 40,000 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 Direct materials added during the month Conversion added during the month $63,100 1,333,400 939,000

Solution

Field Company Physical Units of Production Units to be accounted for Beginning WIP 26000 Units started into Production 327000 Total Units 353000 Units accounted for Units transferred out(353000-40000) 313000 Units in Ending WIP 40000 Weighted Average Method Material Conversion 1) Units completed and transferred to next department 313000 313000 Ending WIP(40000 units 80% complete) with respect to Material and (40000*30% complete ) with respect to conversion 32000 12000 Equivalent Units of Prodcution 345000 325000 Cost per Equivalent Units 2) Material Conversion Total Cost of WIP Inventory $       46,600.00 $              16,500.00 Cost added during the period $ 13,33,400.00 $          9,39,000.00 Total Cost=(A) $ 13,80,000.00 $          9,55,500.00 Equivalent Units of Production=(B) 345000 325000 Cost per Equivalent Units=(A)/(B) $                  4.00 $                        2.94 $                  6.94 Total Cost Assigned Cost of Beginning WIP $       63,100.00 Direct Material added during the month $ 13,33,400.00 Conversion Cost added during the month $    9,39,000.00 Total Cost Assigned $ 23,35,500.00 Cost Assigned and reconciliation EUP Cost per Equivalent Units Total Cost Cost of Units transferred Out Material $    3,13,000.00 $                        4.00 $ 12,52,000.00 Conversion $    3,13,000.00 $                        2.94 $    9,20,220.00 Total cost Transferred Out $ 21,72,220.00 (A) Cost of Ending WIP Direct Material $       32,000.00 $                        4.00 $    1,28,000.00 Conversion $       12,000.00 $                        2.94 $       35,280.00 Total Cost of Ending WIP $    1,63,280.00 (B) Total Cost Assigned=(A)+(B) $ 23,35,500.00