Question

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 $95,300 as of October 1, which consists of $20,400 of direct materials and $74,900 of conversion costs.

During the month the company incurred the following costs:

Direct materials	$	128,800
Conversion		1,067,920

During October, the company started 151,000 units and transferred 161,000 units to finished goods. At the end of the month, the work in process inventory consisted of 25,500 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.

REQUIRED 1:

Total costs to account for: Total costs to account for: Total costs accounted for Difference due to rounding cost/unit Unit reconciliation: 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 % Materials EUP- Materials % Conversion EUP-Conversion Total units Cost per equivalent unit of production Materials Conversion Total costs Costs Costs ÷ Equivalent units of production EUP EUP Cost per equivalent unit of production (rounded to 2 decimals) 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 Conversion Total cost of ending work in process Total costs accounted for

Required 2:

No	Date	General Journal	Debit	Credit

Answer 1

total costs to account for:
Beginning work in process				95,300
cost added during the year				1196720
total costs to account for:				1,292,020
total costs accounted for				1,292,020
Difference due to rounding				0
Unit reconciliation:
units to account for:
Beginning work in process				35,500
started during the year				151,000
total units to account for				186,500
Total units accounted for
transferred to finished goods				161,000
ending work in process inventor				25,500
total units accounted for				186,500
Equivalent units of production-(EUP)-weighted average method
				units	%	EUP-	%	EUP
					materials	materials	converstion	CC
transferred to finished goods				161,000	100%	161,000	100%	161,000
ending work in process inventory				25,500	100%	25,500	80%	20400
total units						186,500		181,400
Cost per Equivalent units of production						Materials		Conversion
Beginning work in process						20,400		74,900
cost added during the year						128,800		1,067,920
total costs					costs	149,200	costs	1,142,820
equivalent units of production					EUP	186,500	EUP	181,400
Cost per Equivalent units of production						0.8		6.3
total costs accounted for
cost of units transferred out:				EUP	cost EUP	total
direct materials				161,000	0.8	128800
conversion				161,000	6.3	1014300
total costs transferred out						1143100
cost of ending work in process				EUP	cost EUP	total
direct materials				25,500	0.8	20400
conversion				20,400	6.3	128520
total cost of ending work in process						148920
total costs accounted for						1292020
Req 2
	General Journal				Debit	Credit
	finished goods inventory				1143100
	work in process inventory					1143100