Fast Co produces its product through a single processing dep

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 $98,300 as of October 1, which consists of $21,300 of direct materials and $77,000 of conversion costs.

During the month the company incurred the following costs:

During October, the company started 154,000 units and transferred 164,000 units to finished goods. At the end of the month, the work in process inventory consisted of 27,000 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.

Record the transfer of goods to finished goods inventory.

Direct materials	$	160,150
Conversion		813,880

Solution

total costs to account for: Beginning work in process 98,300 cost added during the year 974030 total costs to account for: 1,072,330 total costs accounted for 1,072,330 Difference due to rounding 0 Unit reconciliation: units to account for: Beginning work in process 37,000 started during the year 154,000 total units to account for 191,000 Total units accounted for transferred to finished goods 164,000 ending work in process inventor 27,000 total units accounted for 191,000 Equivalent units of production-(EUP)-weighted average method units % EUP- % EUP materials materials converstion CC transferred to finished goods 164,000 100% 164,000 100% 164,000 ending work in process inventory 27,000 100% 27,000 80% 21600 total units 191,000 185,600 Cost per Equivalent units of production Materials Conversion Beginning work in process 21,300 77,000 cost added during the year 160,150 813,880 total costs costs 181,450 costs 890,880 equivalent units of production EUP 191,000 EUP 185,600 Cost per Equivalent units of production 0.95 4.8 total costs accounted for cost of units transferred out: EUP cost EUP total direct materials 164,000 0.95 155800 conversion 164,000 4.8 787200 total costs transferred out 943000 cost of ending work in process EUP cost EUP total direct materials 27,000 0.95 25650 conversion 21,600 4.8 103680 total cost of ending work in process 129330 total costs accounted for 1072330 Req 2 General Journal Debit Credit finished goods inventory 943000 work in process inventory 943000