Chapter $16-$ Problem $2$

Problem

Weighted average:

Process cost summary; equlvalent units

$C,Cl,P4$

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

During the month, the Cutting department incurred the following costs.

Direct materials

$$862,400$

At the beginning of the month, $30,000$ units were in process in the Cutting department. During October, the Cutting department started $140,000$ units and transferred $150,000$ units to the Assembly department. At the end of the month, the Cutting department's work in process inventory consisted of $20,000$ units that were $80\%$ complete with respect to conversion costs.

Required

Prepare the Cutting department's process cost summary for October using the weighted$-$average method.

Prepare the journal entry dated October $31$ to transfer the cost of the partially completed units to Assembly.

Check $(1)$ Costs transferred. out, $$982,500$