The Foster Company has two manufacturing departments, formingand painting. The company uses the FIFO method of processcosting. At the beginning of the month, the formingdepartment has
3,000 units in inventory, 60% complete as to materials and 30%complete as to conversion costs.
The beginning inventory cost of $8,000 consisted of
$5,500 of direct material costs and $2,500 of conversion cost.
During the month, the forming department started 40,000 units.At the end of the month, the forming department had 4,000 units inending inventory, 70% complete as to materials and 25% complete asto conversion.
Units completed in the forming department are transferred to thepainting department.
Cost information for the forming department is as follows:
Beginning work in process inventory $8,000
Direct materials added during the month $160,000
Conversion added during the month $101,660
Assume that Foster uses the FIFO method of process costing.Complete the Forming Department cost report for:
1. Calculating the equivalent units ofproduction.
2. Calculating the costs per equivalent unit of production. (Roundyour answer to 2 decimal places.)
3. Showing the cost reconciliation.
