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.

Answer 1