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 36,000 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 materials costs and $23,700 of conversion costs.
During the month, the forming department started 510,000 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 follows.
Beginning work in process inventory $ 81,100
Direct materials added during the month 1,879,400
Conversion added during the month 1,214,320
Required:
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.