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 $98,300 as of October 1, which consists of $21,300 of direct materials and $77,000 of conversion costs.

During the month, the Cutting department incurred the following costs:

Direct materials	$	160,150
Conversion		813,880

At the beginning of the month, 37,000 units were in process. During October, the company started 154,000 units and transferred 164,000 units to the Assembly department. At the end of the month, the Cutting department's work in process inventory consisted of 27,000 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.

Prepare the Cutting department's process cost summary for October using the weighted-average method. (Round "Cost per EUP" to 2 decimal places.)

Total costs to account for: Costs of beginning work in process Costs incurred this period Total costs to account for: $0 Total costs accounted for Difference due to rounding cost/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 in process - 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 of production EUP EUP Cost per equivalent unit of production 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

Answer 1

• [1]

Total Cost to account for:
Cost of beginning WIP	$                      98,300.00
Costs incurred this period	$                    974,030.00
Total Cost to account for	$                1,072,330.00
Total costs accounted for	$                1,072,330.00
Difference due to rounding cost/unit	$                                      -
Units Reconciliation
Units to account for:
Beginning WIP	37,000
Units started this period	154,000
Total Units to account for	191,000
Total Units accounted for:
Completed & Transferred out	164,000
Ending WIP	27,000
Total Units accounted for	191,000

EUP - Weighted Average Method	Units	% Material	EUP Materials	% Conversion	EUP - Conversion
Units TRANSFERRED	164,000	100%	164,000	100%	164,000
Units of ENDING WIP	27,000	100%	27,000	80%	21,600
Equivalent Units of Production			191,000		185,600
COST per EUP			Material		Conversion
Cost of Beginning WIP			$          21,300.00		$                                  77,000.00
Cost incurred during the period			$        160,150.00		$                                813,880.00
Total Costs		Costs	$        181,450.00	Costs	$                                890,880.00
Equivalent units of production		EUP	191,000	EUP	185,600
Cost per EUP			$              0.95000		$                                      4.80000

TOTAL COST ACCOUNTED FOR
Cost of Units Transferred Out	EUP	Cost per EUP	Total Cost
- Direct Materials	164,000	$                      0.95	$        155,800.00
- Conversion	164,000	$                      4.80	$        787,200.00
Total Cost transferred Out				$            943,000.00
Cost of ending WIP	EUP	Cost per EUP	Total Cost
- Direct Materials	27,000	$                      0.95	$          25,650.00
- Conversion	21,600	$                      4.80	$        103,680.00
Total cost of ending WIP				$            129,330.00
Total costs accounted for					$                            1,072,330.00

• [2]

	Accounts title	Debit	Credit
Oct-31	Work In Process Inventory - Assembly	$                   943,000.00
	Work In Process Inventory - CUtting		$           943,000.00
	(to record transfer of cost )