Question

Check my work Problem 16-3A Weighted Average: Process cost summary; equivalent units LO C2, C3, P4 Fast Co. produces its product through a single processing department Direct materials are added at the start of production, and conversion costs are added evenly throughout the process. The company uses monthly reporting periods for its weighted average process costing system. The Work in Process Inventory account has a balance of $90,300 as of October 1, which consists of $18.900 of direct materials and $71.400 of conversion costs. During the month the company incurred the following costs: Direct materials $151, 150 940,120 During October, the company started 146.000 units and transferred 156.000 units to finished goods. At the end of the month, the work in process inventory consisted of 23,000 units that were 80% complete with respect to conversion costs Required: 1. Prepare the company'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 completed units to finished goods inventory Complete this question by entering your answers in the tabs below. Required 1 Required 2 Prepare the company's process cost summary for October using the weighted average method. (Round "Cost per EUP" to 2 de places.) Total costs to account for: Total costs to account for Total costs accounted for erence due to rounding costunit Unit reconciliation: D Units to account for: Total units to account for Total units accounted for Total units accounted for Equivalent units of production (EUP)- weighted average method Units Beginning work in process inventory units 33.000 Ending work in process units 146.000 Total units 179.000 Cost per equivalent unit of production Cost of beginning work in process Cost of ending work in process Materials EUP. Materials % Conversion 100% 33.000 100% 100% 146.000 80% 179.000 Materials $ 170,050 179.000 EUP. Conversion 33.000 116,800 149 800 Conversion $ 1,011,520 174 400

Answer 1

Solution 1:

Cost charged to production:
Beginning Work In Process	$90,300.00
Cost Added during period	$1,091,270.00
Total costs to account for	$1,181,570.00
Total costs accounted for	$1,181,570.00
Difference due to rounding cost per unit	$0.00
Units reconciliation:
Units to accounts for:
Beginning WIP	33000
Units started	146000
Total units to account for	179000
Total units accounted for:
Units completed and transferred out	156000
Units in ending WIP	23000
Total units accounted for	179000

Fast Company Production cost Report
Particulars	Units	% Materials	Material	% Conversion	Conversion
Equivalent units of production - Weighted Average method
Unit completed & Transferred out	156000	100%	156000	100%	156000
Ending Work In Proces	23000	100%	23000	80%	18400
Equivalent units of production	179000		179000		174400
Cost per equivalent unit of production			Material		Conversion
Beginning Work In Process			$18,900.00		$71,400.00
Cost added during the period			$151,150.00		$940,120.00
Total costs		Cost	$170,050.00	Cost	$1,011,520.00
Equivalent units of production		EUP	179000	EUP	174400
Cost per equivalent unit			$0.95		$5.80
Cost Assignment and Reconciliation:
Cost of unit transferred out	EUP	Cost per EUP	Total Cost
Direct materials	156000	$0.95	$148,200.00
Conversion	156000	$5.80	$904,800.00
Total costs transferred out			$1,053,000.00
Cost of ending work in process
Direct materials	23000	$0.95	$21,850.00
Conversion	18400	$5.80	$106,720.00
Total Cost of ending work in process			$128,570.00
Total costs accounted for			$1,181,570.00

Solution 2:

Date	Particulars	Debit	Credit
31-Oct	Work In Process Dr	$1,053,000.00
	To Finished goods inventory		$1,053,000.00
	(Being completed units transferred to finished goods)