Fast Co. produces its product through a single processing department. Direct mat

Question

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 $100,300 as of October 1, which consists of $21,900 of direct materials and $78,400 of conversion costs.

During the month the company incurred the following costs:

During October, the company started 156,000 units and transferred 166,000 units to finished goods. At the end of the month, the work in process inventory consisted of 28,000 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.

Complete this question by entering your answers in the tabs below.

Required 1

Required 2

Prepare the company’s process cost summary for October using the weighted-average method. (Round "Cost per EUP" to 2 decimal places.)

Journal entry worksheet

Record the transfer of goods to finished goods inventory.

Note: Enter debits before credits.

Explanation / Answer

Requirement-1: 1) Total costs to account for: Beginning Work in Process        1,00,300 Costs Incurred during the period        9,70,040 Total costs to account for:      10,70,340 Total costs accounted for      10,70,340 Difference due to rounding cost/unit 0 2) Unit Reconcilation: Units to account for: beginning work in process            38,000 Units started during the period        1,56,000 Total Units to account for        1,94,000 Total units accounted for: Units completed and transferred        1,66,000 Units in ending work in process            28,000 Total Units accounted for        1,94,000 Working: Units completed        1,66,000 Ending work in process units            28,000 Total        1,94,000 Units started during the period        1,56,000 Units in Beginning work in process            38,000 3) Equivalent Units of production-(EUP)-weighted average method Units % Materials EUP-Materials % Conversion EUP-Conversion Units completed        1,66,000 100%               1,66,000 100%                   1,66,000 Units in Ending work in process            28,000 100%                   28,000 80%                       22,400 Total Units        1,94,000               1,94,000                   1,88,400 4) Cost per equivalent unit of production; Materials Conversion   Beginning work in process $               21,900 $                  78,400 Cost incurred during the period $           1,81,800 $               7,88,240 Total costs $           2,03,700 $               8,66,640 Equivalent Units of production               1,94,000                   1,88,400 Cost per euivalent unit $                   1.05 $                       4.60 5) Total Costs accounted for: Costs of Units transferred out: EUP Cost per EUP Total Cost Direct materials $       1,66,000 $                         1 $          1,74,300 Conversion $       1,66,000 $                         5 $          7,63,600 $               9,37,900 Total Cost transferred out Cost of ending work in process Direct materials $           28,000 $                         1 $             29,400 Conversion $           22,400 $                         5 $          1,03,040 $               1,32,440 Total Cost of ending work in process Total Costs accounted for $            10,70,340 Requirement -2: Date General Journal Debit Credit Oct 31 Finished Goods Inventory $       9,37,900 Work In process inventory $           9,37,900 (To record transferring goods to finished goods inventory)

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