Problem 16-3A Weighted Average: Process cost summary; equivalent units LO C2, C3, P4
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:
Direct materials $ 160,150 Conversion 813,880
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 companyâs process cost summary for October using the weighted-average method.
Total costs to account for: Total costs to account for: $0 Total costs accounted for Difference due to rounding cost/unit $0 Unit reconciliation: Units to account for: Total units to account for Total units accounted for: Total units accounted for Equivalent units of production (EUP)- weighted average method Units % Materials EUP- Materials % Conversion EUP-Conversion Total units Cost per equivalent unit of production Materials Conversion Total costs Costs Costs ÷ Equivalent units of production EUP EUP Cost per equivalent unit of production (rounded to 2 decimals) 0 0 Total costs accounted for: Cost of units transferred out: EUP Cost per EUP Total cost Direct materials Conversion Total costs transferred out Costs of ending work in process EUP Cost per EUP Total cost Direct materials $0.00 $0 Conversion $0.00 0 Total cost of ending work in process Total costs accounted for
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.
Problem 16-3A Weighted Average: Process cost summary; equivalent units LO C2, C3, P4
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:
| Direct materials | $ | 160,150 |
| Conversion | 813,880 | |
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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 companyâs process cost summary for October using the weighted-average method.
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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.
Related questions
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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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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[The following information applies to the questions displayed below.]
The following partially completed process cost summary describes the July production activities of Ashad Company. Its production output is sent to its warehouse for shipping. All direct materials are added to products when processing begins. Beginning work in process inventory is 20% complete with respect to conversion.
| Equivalent Units of Production | Direct Materials | Conversion | ||||
| Units transferred out | 37,500 | EUP | 37,500 | EUP | ||
| Units of ending work in process | 2,000 | EUP | 1,200 | EUP | ||
| Equivalent units of production | 39,500 | EUP | 38,700 | EUP | ||
| Costs per EUP | Direct Materials | Conversion | ||||||
| Costs of beginning work in process | $ | 13,450 | $ | 1,860 | ||||
| Costs incurred this period | 440,800 | 238,080 | ||||||
| Total costs | $ | 454,250 | $ | 239,940 | ||||
| Units in beginning work in process (all completed during July) | 1,500 |
| Units started this period | 38,000 |
| Units completed and transferred out | 37,500 |
| Units in ending work in process | 2,000 |
Exercise 16-12 Weighted average: Completing a process cost summary LO C3
Prepare its process cost summary using the weighted-average method. (Round "Cost per EUP" to 2 decimal places.)
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