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 follows. Beginning work in
process inventory $ 56,100 Direct materials added during the month
1,660,000 Conversion added during the month 929,300 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 department.
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