Fast Co. produces its product through a single processingdepartment. Direct materials are added at the start of production,and conversion costs are added evenly throughout the process. Thecompany uses monthly reporting periods for its weighted-averageprocess costing system. The Work in Process Inventory account has abalance of $98,300 as of October 1, which consists of $21,300 ofdirect materials and $77,000 of conversion costs.
During the month the company incurred the followingcosts:
Directmaterials $ 160,150 Conversion 813,880
During October, the company started 154,000 units and transferred164,000 units to finished goods. At the end of the month, the workin process inventory consisted of 27,000 units that were 80%complete with respect to conversion costs.
Required:
1. Prepare the companyâs process cost summary forOctober using the weighted-average method.
2. Prepare the journal entry dated October 31 totransfer the cost of the completed units to finished goodsinventory.
Prepare the companyâs process cost summary for October using theweighted-average method. (Round "Cost per EUP" to 2 decimalplaces.)
Total costs to account for: Costs of beginning work in process Costs incurred this period Total costs to accountfor: $0 Total costs accounted for Difference due to roundingcost/unit $0 Unit reconciliation: Units to account for: Beginning work in process inventory - units Units started this period Total units to account for Total units accounted for: Units completed and transferred out Ending work inprocess - units Total units accounted for Equivalent units of production (EUP)- weighted average method Units % Materials EUP- Materials % Conversion EUP-Conversion Units completed and transferred out Ending work in process - units Total units Cost per equivalent unit of production Materials Conversion Cost of beginning work in process Costs incurred this period Total costs Costs Costs ÷ Equivalent units ofproduction EUP EUP Cost per equivalent unit ofproduction (rounded to 2 decimals) 0 0 Total costs accounted for: Cost of units transferredout: EUP Cost perEUP Totalcost Direct materials Conversion Total costs transferredout Costs of ending work inprocess EUP Cost perEUP Totalcost Direct materials $0.00 $0 Conversion $0.00 0 Total cost of ending work inprocess Total costs accounted for
Record the transfer of goods to finished goods inventory.
Date General Journal Debit Credit Oct 31
Fast Co. produces its product through a single processingdepartment. Direct materials are added at the start of production,and conversion costs are added evenly throughout the process. Thecompany uses monthly reporting periods for its weighted-averageprocess costing system. The Work in Process Inventory account has abalance of $98,300 as of October 1, which consists of $21,300 ofdirect materials and $77,000 of conversion costs.
During the month the company incurred the followingcosts:
| Directmaterials | $ | 160,150 |
| Conversion | 813,880 | |
During October, the company started 154,000 units and transferred164,000 units to finished goods. At the end of the month, the workin process inventory consisted of 27,000 units that were 80%complete with respect to conversion costs.
Required:
1. Prepare the companyâs process cost summary forOctober using the weighted-average method.
2. Prepare the journal entry dated October 31 totransfer the cost of the completed units to finished goodsinventory.
Prepare the companyâs process cost summary for October using theweighted-average method. (Round "Cost per EUP" to 2 decimalplaces.)
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Record the transfer of goods to finished goods inventory.
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Related questions
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:
| Direct materials | $ | 181,800 |
| Conversion | 788,240 | |
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 companyâs 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 companyâs process cost summary for October using the weighted-average method. (Round "Cost per EUP" to 2 decimal places.)
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Journal entry worksheet
Record the transfer of goods to finished goods inventory.
Note: Enter debits before credits.
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