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 25,000 units in inventory, 60% complete as to materials and 40% complete as to conversion costs. The beginning inventory cost of $60,100 consisted of $44,800 of direct materials costs and $15,300 of conversion costs. During the month, the forming department started 300,000 units. At the end of the month, the forming department had 30,000 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 $ 60,100Direct materials added during the month 1,231,200Conversion added during the month 896,700 Required:
1. Calculate the equivalent units of production for the forming department.

The weighted average cost of valuation does not separate the opening inventory from the units newly introduced when accounting for completed units in a production period.

The units to be transferred out = opening units + newly started - closing inventory

Transferred out = 25,000 + 300,000 - 30,000 = 295,000

The equivalent unit will be determined as follows:

Equivalent units of material

Item units workings Equivalent unit

Transferred out 295,000 100% × 295,000 = 295,000

Closing inventory 30,000 80% × 30,000 = 24,000

Equivalent unit of material 319,000

Equivalent units of conversion cost

Item units workings Equivalent unit

Transferred out 295,000 100% × 295,000 = 295,000

Closing inventory 30,000 30% × 30,000 = 9,000

Equivalent unit of conversion cost 304,000