Question

Use the following information for the Exercises below.

[The following information applies to the questions displayed below.]

The production department in a process manufacturing system completed 72,000 units of product and transferred them to finished goods during a recent period. Of these units, 28,800 were in process at the beginning of the period. The other 43,200 units were started and completed during the period. At period-end, 17,100 units were in process.

Exercise 16-4 Weighted average: Computing equivalent units LO C2

Prepare the department’s equivalent units of production with respect to direct materials under each of three separate assumptions using the weighted-average method for process costing.

Equivalent Units of Production (EUP)—Weighted Average Method
1. All direct materials are added to products when processing begins.
	Units	% Materials	EUP—Materials
Total EUP
				2. Beginning inventory is 30% complete as to materials and conversion costs. Ending inventory is 70% complete as to materials and conversion costs.
	Units	% Materials	EUP—Materials
Total EUP
				3. Beginning inventory is 60% complete as to materials and 40% complete as to conversion costs. Ending inventory is 30% complete as to materials and 60% complete as to conversion costs.
	Units	% Materials	EUP—Materials
Total EUP

Use the following information for the Exercises below.

[The following information applies to the questions displayed below.]

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 27,000 units in inventory, 70% complete as to materials and 30% complete as to conversion costs. The beginning inventory cost of $56,100 consisted of $40,000 of direct materials costs and $16,100 of conversion costs.

During the month, the forming department started 320,000 units. At the end of the month, the forming department had 35,000 units in ending inventory, 80% complete as to materials and 40% 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	$	62,100
Direct materials added during the month		1,660,000
Conversion added during the month		929,300

Exercise 16-6 Weighted average: Cost per EUP and costs assigned to output LO C2

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
Conversion
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