Chapter 16 -Problem 2 Problem Fast Co. produces its product through two processing departments: Cutting and Assembly. Direct materiWelghted average: als are added at the start of production in the Cutting department, and conversion costs are added evenly Process cost summary. throughout each process. The company uses monthly reporting periods for its weighted-average process equlvalent units cositing system. The Work in Process Inventory-Cutting account has a balance of $84,300 as of October 1 , C2 C3 P4 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 materlals. $144,400 Conversion $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 inyentory consisted of 20,000 units that were 80% complete with respect to conversion costs. Required 1. Prepare the Cutting department's process cost summary for October using the weighted-average Cheek (1) Costs trensferredmethod. out, $982,500 2. Prepare the jourual entry dated October 31 to transfer the cost of the partially completed units to Assembly