Fast Co. produces its product through a single processing department. Direct materials are added at the start of production, and conversion costs are added evenly throughout the process. The company uses monthly reporting periods for its weighted-average process costing system. The Work in Process Inventory account has a balance of $84,300 as of October 1, which consisted of $17,100 of direct materials and $67,200 of conversion costs.

During the month the company incurred the following costs:

During October, the company started 140,000 units and transferred 150,000 units to finished goods. At the end of the month, the work in process inventory consisted of 20,000 units that were 80% complete with respect to conversion costs.

Required:

1. Prepare the company?s process cost summary for October using the weighted-average method.

2. Prepare the journal entry dated October 31 to transfer the cost of the completed units to finished goods inventory.

Transcribed Image Text:

Direct materials Conversion $144,400 862,400 Total costs to account for: Total costs to account for: Total costs accounted for Difference due to rounding cost/unit Unit reconciliation: Units to account for: Total units to account for Total units accounted for: Total units accounted for $ 0 0 Equivalent units of production (EUP)- weighted average method Units Total units Cost per equivalent unit of production Total costs + Equivalent units of production Cost per equivalent unit of production (rounded to 2 decimals) Total costs accounted for: Cost of units transferred out: Direct materials Conversion Total costs transferred out Costs of ending work in process Direct materials Conversion Total cost of ending work in process Total costs accounted for EUP EUP % Materials EUP-Materials % Conversion $ $ Costs EUP Cost per EUP Cost per EUP 0.00 0.00 Materials Total cost Total cost 0 0 Costs EUP EUP. Conversion Conversion view transaction list Journal Entry Worksheet 1 view general journal Record the transfer of goods to finished goods inventory. Date Oct 31 done General Journal Debit Credit *Enter debits before credits record entry clear entry Direct materials Conversion $144,400 862,400 Total costs to account for: Total costs to account for: Total costs accounted for Difference due to rounding cost/unit Unit reconciliation: Units to account for: Total units to account for Total units accounted for: Total units accounted for $ 0 0 Equivalent units of production (EUP)- weighted average method Units Total units Cost per equivalent unit of production Total costs + Equivalent units of production Cost per equivalent unit of production (rounded to 2 decimals) Total costs accounted for: Cost of units transferred out: Direct materials Conversion Total costs transferred out Costs of ending work in process Direct materials Conversion Total cost of ending work in process Total costs accounted for EUP EUP % Materials EUP-Materials % Conversion $ $ Costs EUP Cost per EUP Cost per EUP 0.00 0.00 Materials Total cost Total cost 0 0 Costs EUP EUP. Conversion Conversion view transaction list Journal Entry Worksheet 1 view general journal Record the transfer of goods to finished goods inventory. Date Oct 31 done General Journal Debit Credit *Enter debits before credits record entry clear entry

Answer rating: 100% (QA)

Fast Co Process Cost Summary Costs Charged to Production Costs of beginning goods in process Direct ... View the full answer