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 $106,300 as of October 1, which consists of $23,700 of direct materials and $82,600 of conversion costs. During the month, the Cutting department incurred the following costs: Direct materials Conversion $169, 150 940,760 At the beginning of the month, 41,000 units were in process. During October, the company started 162,000 units and transferred 172,000 units to the Assembly department. At the end of the month, the Cutting department's work in process inventory consisted of 31,000 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. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Prepare the Cuttina department's process cost summary for October using the weiahted average method. (Round "Cost per EUP" to 2 decimal pl

Answer 1

1
Total costs to account for:
Costs of beginning work in process	106300
Costs incurred this period	1109910
Total costs to account for	1216210
Total costs accounted for	1216210
Difference due to rounding cost/unit	0
Unit reconciliation:
Units to account for:
Beginning work in process inventory	41000
Units started this period	162000
Total units to account for	203000
Total units accounted for:
Units completed and transferred out	172000
Ending work in process	31000
Total units accounted for	203000
Equivalent units of production (EUP)- weighted average method
	Units	%Materials	EUP-Materials	%Conversion	EUP-Conversion
Units completed and transferred out	172000	100%	172000	100%	172000
Ending work in process	31000	100%	31000	80%	24800
Total units	203000		203000		196800
Cost per equivalent unit of production			Materials		Conversion
Cost of beginning work in process			23700		82600
Costs incurred this period			169150		940760
Total costs		Costs	192850	Costs	1023360
÷ Equivalent units of production		EUP	203000	EUP	196800
Cost per equivalent unit of production			0.95		5.20
Total cost accounted for:
Cost of units transferred out	EUP	Cost per EUP	Total cost
Direct materials	172000	0.95	163400
Conversion	172000	5.20	894400
Total cost transferred out				1057800
	EUP	Cost per EUP	Total cost
Cost of ending work in Process
Direct materials	31000	0.95	29450
Conversion	24800	5.20	128960
Total Cost of ending work in Process				158410
Total cost accounted for				1216210
2
General Journal	Debit	Credit
Work in Process inventory-Assembly	1057800
Work in Process inventory-Cutting		1057800