problem 3-3A 1 and 2

ute both the direct material cost and the conversion cost per rsion cost assi Check (2) Conversion co ted and trans- per equivaient unit, $4.50 3. Compute the direct material cost and the conve ferred out and (b) ending work in process inventor Analysis Component 4. The company sells and ships all units to customers as soon as the (3b) $783,000 Assume that an er- story. Instead of being page memo to the ror is made in determining the percentage of completion for units oend 30% complete with respect to labor, they are actually 60% compl lant manager describing how this error affects its November financii staternents Fast Co. produces its product through a single processing department. Direct materiais are added at the start of Problem 3-3A production, and conversion costs are added evenly throughout the process. The company uses monthly report- Weighted average: ing periods for its weighted-average process costing system. The Work in Process Inventory account has a bal- Process cost summary ance of $84.300 as of October 1, which consists of $17,100 of direct materials and $67,200 of conversion costs. equivalent units During the month, the company incurred the following costs: C2 C3 P4 Direct materials $144,400 Conversion ... 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 Check (1) Costs trarn out to finished goods inventory Tamar Co. manufactures a single product in one department. All direct materials are added at the begin- Problem Weighted average Process cost summ equivalent units, co ning of th During e manufacturing process. Conversion costs are added evenly throughout the process. ay, the company completed and transferred 22,200 units of product to finished goods inventory. lts 3,000 units of beginning work in proce sion costs It bas n 400 ss consisted of $19,800 of direct materials and $221.940 of conver - ith re- estimates