Fast Co. produces its product through two processing departments. 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 $99,300 as of October 1, which consists of $21,600 of direct materials and $77,700 

of conversion costs.

 

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

Direct materials$170,900Conversion763,800

At the beginning of the month, 37,500 units were in process. During October, the company started 155,000 units and transferred 165,000 units to the Assembly department. At the end of the month, the Cutting department's work in process inventory consisted of 27,500 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 method.

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

Answer rating: 100% (QA)

Here are the steps to solve this problem 1 Cutting Department Process Cost Summary for Octo... View the full answer