The Fields Company has two manufacturing departments, forming and painting. The company uses the weighted-average method of process costing

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 35,500 units in inventory, 65% complete as to materials and 35% complete as to conversion costs. The beginning inventory cost of $81,100 consisted of $57,400 of direct material costs and $23,700 of conversion cost. During the month, the forming department started 510,000 units. At the end of the month, the forming department had 51,000 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 $ 81,100 Direct materials added during the month 1,842,915 Conversion added during the month 1,276,290 1. Calculate the equivalent units of production for the forming department. 2. Calculate the costs per equivalent unit of production for the forming department. 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

McCoy’s Fish House purchases a tract of land and an existing building for $1,000,000

McCoy’s Fish House purchases a tract of land and an existing building for $1,000,000. The company plans to remove the old building and construct a new restaurant on the site. In addition to the purchase price, McCoy pays closing costs, including title insurance of $3,000. The company also pays $14,000 in property taxes, which includes $9,000 of back taxes (unpaid taxes from previous years) paid by McCoy on behalf of the seller and $5,000 due for the current fiscal year after the purchase date. Shortly after closing, the company pays a contractor $50,000 to tear down the old building and remove it from the site. McCoy is able to sell salvaged materials from the old building for $5,000 and pays an additional $11,000 to level the land.

Required:

Determine the amount McCoy’s Fish House should record as the cost of the land.

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