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 $103,300 as of October 1, which consists of $22,800 of direct materials and $80,500 of conversion costs. During the month, the Cutting department incurred the following costs: Direct materials Conversion $ 136,000 863,240 At the beginning of the month, 39,500 units were in process. During October, the company started 159,000 units and transferred 169,000 units to the Assembly department. At the end of the month, the Cutting department's work in process inventory consisted of 29,500 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.

Answer 1

с D E F A B 1 Total costs to account for 2 Costs of beginning work in process $ 103,300 3 Costs incurred this period $ 999,240 4 Total costs to account for $ 1,102,540 5 Total costs accounted for $ 1,102,540 6 *Difference due to rounding cost/unit $ 7 Unit reconciliation 8 Units to account for 9 Beginning work in process inventory - units 39,500 10 Units started this period 159,000 11 Total units to account for 198,500 12 Total units accounted for 13 Units Completed and transferred out 169,000 14 Ending work in process - units 29,500 15 Total units accounted for 198,500 16 Equivalent Units Of Production (EUP)- Weighted Average Method 17 Units % Materials EUP-Materials % Conversion Eup Conversion 18 Units Completed And Transferred Out 169,000 100% 169,000 100% 169,000 19 Units of ending work in process 29,500 100% 29,500 80% 23,600 20 Total units 198,500 198,500 192,600

Materials $ 22,800 $ 136,000 $ 158,800 costs 198500 EUP $ 0.80 Conversion $ 80,500 $ 863,240 $ 943,740 192600 $ 4.90 costs EUP 21 22 Cost per EUP 23 Cost of beginning work in process 24 Cost incurred this period 25 Total costs 26 Equivalent units of production 27 Cost per Equivalent Unit of Production 28 Total costs accounted for 29 Cost of units transferred out 30 Direct materials 31 Conversion 32 Total costs transferred out 33 Costs of ending work in process Direct materials 35 Conversion 36 Total cost of ending work in process 37 Total costs accounted for EUP Cost per EUP Total cost 169,000$ 0.80$ 135,200 169,000$ 4.90 $ 828, 100 $ 963,300 EUP Cost per EUP Total cost 29,500 $ 0.80 $ 23,600 23,600 $ 4.90$ 115,640 $ 139,240 $ 1,102,540 34

B А B C E F 1 Total costs to account for 2 Costs of beginning work in process 103300 3 Costs incurred this period =136000+863240 4 Total costs to account for =+B2+B3 5 Total costs accounted for =+E37 6 *Difference due to rounding cost/unit =+B4-B5 7 Unit reconciliation 8 Units to account for 9 Beginning work in process inventory - units 39500 10 Units started this period 159000 11 Total units to account for =+B9+B10 12 Total units accounted for 13 Units Completed and transferred out 169000 14 Ending work in process - units 29500 15 Total units accounted for =+B13+B14 16 Equivalent Units Of Production (EUP)- Weighted Average Method 17 Units % Materials EUP-Materials % Conversion Eup Conversion 18 Units Completed And Transferred Out =+B13 =+B18*C18 1 =+B18*E18 19 Units of ending work in process =+B14 1 =+B19*C19 0.8 =+B19*E19 20 Total units =+B18+B19 =+D18+D19 =+F18+F19 1

Conversion 80500 Materials 22800 136000 =+D23+D24 =+D20 =+D25/D26 863240 =+F23+F24 costs costs EUP EUP =+F20 =+F25/F26 21 22 Cost per EUP 23 Cost of beginning work in process 24 Cost incurred this period 25 Total costs 26 Equivalent units of production 27 Cost per Equivalent Unit of Production 28 Total costs accounted for 29 Cost of units transferred out 30 Direct materials 31 Conversion 32 Total costs transferred out 33 Costs of ending work in process 34 Direct materials 35 Conversion 36 Total cost of ending work in process 37 Total costs accounted for EUP =+018 Cost per EUP Total cost =+D27 =+B30*C30 =+F27 =+B31*C31 =+F18 =+D30+D31 EUP =+D19 Cost per EUP Total cost =+D27 =+B34*C34 =+F27 =+B35*C35 =+F19 =+D34+D35 =+E32+E36

Credit Date General Journal Debit Oct-31 Work in process inventory-Assembly $ 963,300 Work in process inventory-Cutting (To record the costs transferred to assembly) $ 963,300