Question

Please show calculations on how to obtain the answers for support.

17 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 $107,300 as of October 1, which consists of $24,000 of direct materials and $83,300 of conversion costs. 0.58 points

Answer 1

Answers

• Requirement 1

Total Cost to account for:
Cost of beginning WIP	$                    107,300.00
Costs incurred this period	$                1,147,660.00
Total Cost to account for	$                1,254,960.00
Total costs accounted for	$                1,254,960.00
Difference due to rounding cost/unit	$                                      -
Units Reconciliation
Units to account for:
Beginning WIP	41,500
Units started this period	163,000
Total Units to account for	204,500
Total Units accounted for:
Completed & Transferred out	173,000
Ending WIP	31,500
Total Units accounted for	204,500

EUP - Weighted Average Method	Units	% Material	EUP Materials	% Conversion	EUP - Conversion
Units TRANSFERRED	173,000	100%	173,000	100%	173,000
Units of ENDING WIP	31,500	100%	31,500	80%	25,200
Equivalent Units of Production			204,500		198,200
COST per EUP			Material		Conversion
Cost of Beginning WIP			$          24,000.00		$                                  83,300.00
Cost incurred during the period			$        180,500.00		$                                967,160.00
Total Costs		Costs	$        204,500.00	Costs	$                            1,050,460.00
Equivalent units of production		EUP	204,500	EUP	198,200
Cost per EUP			$              1.00000		$                                      5.30000
TOTAL COST ACCOUNTED FOR
Cost of Units Transferred Out	EUP	Cost per EUP	Total Cost
- Direct Materials	173,000	$                      1.00	$        173,000.00
- Conversion	173,000	$                      5.30	$        916,900.00
Total Cost transferred Out				$        1,089,900.00
Cost of ending WIP	EUP	Cost per EUP	Total Cost
- Direct Materials	31,500	$                      1.00	$          31,500.00
- Conversion	25,200	$                      5.30	$        133,560.00
Total cost of ending WIP				$            165,060.00
Total costs accounted for					$                            1,254,960.00

• Requirement 2

	Accounts title	Debit	Credit
Oct-31	Work in Process Inventory - Assembly	$               1,089,900.00
	Work In Process Inventory - Cutting		$       1,089,900.00