Question

Problem 16-3A Weighted Average: Process cost summary: equivalent units LO C2, C3, P4 Fast Co produces its product through two processing departments. Direct materials are added at the start of production in the Cutting department, and conversion costs are added evenly throughout each process. The company uses monthly reporting periods for its weighted average process costing system. The Work in Process Inventory-Cutting account has a balance of $101,300 as of October 1 which consists of $22.200 of direct materials and $79.100 of conversion costs. During the month, the Cutting department incurred the following costs: Direct materials Conversion 5192,50 812,960 At the beginning of the month, 38,500 units were in process. During October, the company started 157,000 units and transferred 167.000 units to the Assembly department. At the end of the month, the Cutting department's work in process inventory consisted of 28,500 units that were 80% complete with respect to conversion costs Required: 1. Prepare the Cutting department'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 partially completed units to Assembly Complete this question by entering your answers in the tabs below Required 1 Required 2 Prepare the cutting department's process cost summary for October using the weighted average method. (Round "Cost per EUD o 2 decimal places Total costs to account for Total costs to account for Total costs accounted for rence due to founding costruit D Units to account for:

Answer 1

Please find below table useful to compute desired results: -

Α. EUP - Weighted Average Method Units Units Transferred =B10 Units of Ending WIP =B11 F % Material =100/100 1=100/100 G H EUP Materials % conversion EUP Conversion =E2*F2 =100/100 =G2*H2 =E3*F3 =B12 =G3*H3 =G2+G3 =I2+I3 Cost Per EUP Cost of Beg. WIP Cost Incurred during the period Total Costs Equivalent Units of Production Cost Per EUP Material =B3 =B6 =G7+G8 =G4 =G9/G10 Conversion =B4 =B7 =17+18 =14 1=19/110 ЕТР EUP 1 Particulars Given 2 WIP inventory Balance 101300 3 Direct Materials 22200 4 Conversion Costs 79100 5 During the month: 6 Direct Materials 192850 7 Conversion Costs 812960 8 Units in Process 38500 9 Started during the month 157000 10 Transferred Units 167000 11 Ending WIP 28500 12 Complete with respect to conversion 1=80/100 13 14 Total Cost to Account for: 15 Cost of Beg. WIP =B2 16 Costs incurred this Period =B6+B7 17 Total Cost to Account for: =B15+B16 18 Units Reconciliation 19 Units to Account for: 20 Beg. WIP =B8 21 Units Started this period =B9 22 Total Units to Accounts for =B20+B21 23 Total Units Accounted for: 24 Completed & Transferred Out =B10 25 Ending WIP 26 Total Units Accounted for =B24+B251 27 =G2 =G15+G16 Total Cost Accounted For Cost of Units Transferred Out EUP Cost per EUP Direct Materials =G11 =E15*F15 Conversion =12 =111 I=E16*F16 Total cost Transferred Out Cost of Ending WIP EUP Cost per EUP Total Cost Direct Materials =G3 =G11 I=E19*F19 Conversion =13 =E20*F20 Total Cost of ending WIP Total Costs Accounted for REQ.2 Date Account Titles and Explanation Debit Credit Oct. 31 WIP inventory- Assembly =H17 WIP inventory-Cutting =F25 (to record the transfer of goods to next department) =111 =G19+G20 =H17+H21 =B11 Activate Wi

End results would be as follows: -

Units D EUP - Weighted Average Method 101,300 Units Transferred 22,200 || Units of Ending WIP 79.100 167.000 28,500 % Material 100% 100% EUP Materials 167,000 28.500 195,500 H % conversion | EUP Conversion 100% 167,000 80% 22.800 189,800 Material 22,200 192.850 215.050 195,500 EUP 1.10 Conversion 79.100 812.960 892.060 189.800 4.70 EP А 1 Particulars Given 2 WIP inventory Balance 3 Direct Materials 4 Conversion Costs 5 During the month: 6 Direct Materials 7 Conversion Costs 8 Units in Process 9 Started during the month 10 Transferred Units 11 Ending WIP 12 Complete with respect to conversion 13 14 Total Cost to Account for: 15 Cost of Beg. WIP 16 Costs incurred this Period 17 Total Cost to Account for: 18 Units Reconciliation 19 Units to Account for: 20 Beg. WIP 21 Units Started this period 22 Total Units to Accounts for 23 Total Units Accounted for: 24 Completed & Transferred Out 25 Ending WIP 26 Total Units Accounted for 27 183.700 784.900 192.850 || Cost Per EUP 812,960 || Cost of Beg. WIP 38.500 Cost Incurred during the period 157,000 || Total Costs 167,000 | Equivalent Units of Production 28,500 Cost Per EUP 80% Total Cost Accounted For Cost of Units Transferred Out EUP Cost per EUP 101,300 Direct Materials 167,000 1.10 | 1,005,810 | Conversion 167,000 4.70 1,107,110 Total cost Transferred Out Cost of Ending WIP EUP Cost per EUP Direct Materials 28,500 1.10 38.500 Conversion 22.800 4.70 157,000 || Total Cost of ending WIP 195,500 || Total Costs Accounted for REQ.2 167,000 || Date Account Titles and Explanation Debit 28,500 || Oct. 31 WIP inventory- Assembly 968,600 195,500 WIP inventory-Cutting (to record the transfer of goods to next department) 968,600 Total Cost 31,350 107,160 138,510 1,107,110 Credit 968.600 Activate Windows