Question

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 $93,300 as of October 1, which consists of $19,800 of direct materials and $73,500 of conversion costs. During the month, the Cutting department incurred the following costs: Direct materials Conversion S 182,050 1,015,960 At the beginning of the month, 34,500 units were in process. During October, the company started 149,000 units and transferred 159,000 units to the Assembly department. At the end of the month, the Cutting department's work in process inventory consisted of 24.500 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.

Answer 1

Total cost to account for:
Cost of beginning work in process	$93300
Cost incurred during October (182050+1015960)	1198010
Total costs to account for	$1291310
Total costs accounted for:	1291310
Difference due to the rounding cos/unit	$0
Unit Reconciliation:
Units to account for:
Beginning work in process	34500
Units started during October	149000
Total units to account for	183500
Total units accounted for:
Units completed and transferred out	159000
Ending work in process	24500
Total units accounted for	183500
Equivalent Units of Production- Weighted Average Method
	Units	% Materials	EUP- Materials	% Conversion	EUP- Conversion
Units completed and transferred out	159000	100%	159000	100%	159000
Ending work in process	24500	100%	24500	80%	19600
Total units	183500		183500		178600
Cost per equivalent unit of production			Materials		Conversion
Cost of beginning work in process			$19800		$73500
Cost transferred out			182050		1015960
Total costs		Costs	$201850	Costs	$1089460
/ Equivalent units of production		EUP	183500	EUP	178600
Cost per equivalent unit of production			$1.10		$6.10
Total costs accounted for:
Cost of units transferred out:	EUP	Cost per EUP	Total cost
Direct materials	159000	$1.10	$174900
Conversion	159000	$6.10	969900
Total costs transferred out				$1144800
Cost of ending work in process	EUP	Cost per EUP	Total cost
Direct materials	24500	$1.10	$26950
Conversion	19600	$6.10	119560
Total cost of ending work in process				146510
Total costs accounted for				$1291310

2)

Date	General Journal	Debit	Credit
Oct 31	Work in process inventory- Assembly	$1144800
	Work in process inventory- Cutting		$1144800
	(To record transfer the cost of partially completed units to assembly)