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 25,000 units in inventory, 60% complete as to materials and 40% complete as to conversion costs. The beginning inventory cost of $60,100 consisted of $44,800 of direct materials costs and $15,300 of conversion costs. During the month, the forming department started 300,000 units. At the end of the month, the forming department had 30,000 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 follows. Beginning work in process inventory$60,100 Direct materials added during the month 1,231,200 Conversion added during the month 896,700 Exercise 03-7A FIFO: Costs per EUP LO C4 Assume that Fields uses the FIFO method of process costing. 1. Calculate the equivalent units of production for the forming department. 2. Calculate the costs per equivalent unit of production for the forming departmen

Fields Company

Forming Department

                                                            Materials       Conversion

1. The equivalent units of production 304,000          294,000

2. The costs per equivalent unit            $4.05               $3.05

Explanation:

a) Data and Calculations:

                                  Units       Materials       Conversion

Work in Process     25,000          60%                 40%

Units started        300,000

Ending WIP            30,000          80%                 30%

Units completed 295,000        100%                100%

Equivalent Units:

                                  Units       Materials       Conversion

Work in Process     25,000       10,000 (40%)   15,000 (60%)

Units started        300,000

Ending WIP            30,000       24,000 (80%)      9,000 (30%)

Units completed 295,000        100%                100%

Units started and

completed         270,000     270,000             270,000

Total equivalent units           304,000             294,000

                                  Units          Materials       Conversion   Total

Costs added during the month $1,231,200       $896,700   $2,127,900

Total equivalent units                    304,000         294,000

Cost per equivalent unit                 $4.05               $3.05

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