Question - The Fields Company has two manufacturing departments, forming and painting. The company uses the FIFO method of process costing. At the beginning of the month, the forming department has 26,000 units in inventory. 70% complete as to materials and 30% complete as to conversion costs. The beginning inventory cost of $62,100 consisted of $46,000 of direct material costs and $16,100 of conversion cost.

During the month, the forming department started 320,000 units. At the end of the month, the forming department had 32,000 units in ending inventory. 90% 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 is as follows:

Beginning work in process inventory - $ 62,100

Direct materials added during the month - 1,291,200

Conversion added during the month - 926,700

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.