Assume Fast uses the average-cost method to account for its process costing system.

Instructions:
1. Prepare the company's process cost summary using average cost.
2. Prepare the journal entry at the end of the period to transfer the cost of completed units to finishedgoods.

Transcribed Image Text:

FAST COo Goods in Process Inventorv Acct. No. 133 Date Explanation Debit Credit Balance Oct Balance 31 Direct materials 102,050 408,200 31 Applied overhea 244,920 335,930 437,980 846,180 1,091.100 31 Direct labor Beginning goods in process inventory: Direct materials Direct labor Factory overhead $59,450 S172,800 S103.680 During October Units started Units transferred to finished goods 140,000 150,000 End of October: Units in goods in process inventory Percent complete 20,000 80.00% Check figure (1) Total cost transferred to finished goods S982,500