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.

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

Record the transfer of goods to finished goods inventory.


Direct materials	$	160,150
Conversion		813,880

1072330

The journal entry dated October 31 to transfer the cost of the completed units to finished goods inventory:

Total costs to account for:
Costs of beginning work in process	98300
Costs incurred this period	974030
Total costs to account for:	1072330
Total costs accounted for	1072330
Difference due to rounding cost/unit	$0
Unit reconciliation:
Units to account for:
Beginning work in process inventory - units	37000
Units started this period	154000
Total units to account for	191000
Total units accounted for:
Units completed and transferred out	164000
Ending work in process - units	27000
Total units accounted for	191000
Equivalent units of production (EUP)- weighted average method
	Units	% Materials	EUP- Materials	% Conversion	EUP-Conversion
Units completed and transferred out	164000	100%	164000	100%	164000
Ending work in process - units	27000	100%	27000	80%	21600
Total units	191000		191000		185600
Cost per equivalent unit of production			Materials		Conversion
Cost of beginning work in process			21300		77000
Costs incurred this period			160150		813880
Total costs		Costs	181450	Costs	890880
÷ Equivalent units of production		EUP	191000	EUP	185600
Cost per equivalent unit of production (rounded to 2 decimals)	0.95		4.8
Total costs accounted for:
Cost of units transferred out:	EUP	Cost per EUP	Total cost
Direct materials	164000	0.95	155800
Conversion	164000	4.8	787200
Total costs transferred out				943000
Costs of ending work in process	EUP	Cost per EUP	Total cost
Direct materials	27000	$0.95	$25650
Conversion	21600	$4.80	103680
Total cost of ending work in process				129330
Total costs accounted for				1072330

Fast Co. produces its product through a single processing department. Direct materials are added at the start of production, and conversion costs are added even

Fast Co produces its product through a single processing dep

Solution

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