Question

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 $98,300 as of October 1, which consists of $21,300 of direct materials and $77,000 of conversion costs.

During the month the company incurred the following costs:

Direct materials	$	160,150
Conversion		813,880

During October, the company started 154,000 units and transferred 164,000 units to finished goods. At the end of the month, the work in process inventory consisted of 27,000 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.

Prepare the company’s process cost summary for October using the weighted-average method. (Round "Cost per EUP" to 2 decimal places.)

Total costs to account for: Costs of beginning work in process Costs incurred this period Total costs to account for: $0 Total costs accounted for Difference due to rounding cost/unit $0 Unit reconciliation: Units to account for: Beginning work in process inventory - units Units started this period Total units to account for Total units accounted for: Units completed and transferred out Ending work in process - units Total units accounted for Equivalent units of production (EUP)- weighted average method Units % Materials EUP- Materials % Conversion EUP-Conversion Units completed and transferred out Ending work in process - units Total units Cost per equivalent unit of production Materials Conversion Cost of beginning work in process Costs incurred this period Total costs Costs Costs ÷ Equivalent units of production EUP EUP Cost per equivalent unit of production (rounded to 2 decimals) 0 0 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 $0.00 $0 Conversion $0.00 0 Total cost of ending work in process Total costs accounted for

Record the transfer of goods to finished goods inventory.

	Date General Journal Debit Credit Oct 31

Answer 1

Total costs to account for: Costs of beginning work in process 98300 Costs incurred this period 974030 Total costs to account for: 1072330 Total costs accounted for 1072330 Difference due to rounding cost/unit $0 Unit reconciliation: Units to account for: Beginning work in process inventory - units 37000 Units started this period 154000 Total units to account for 191000 Total units accounted for: Units completed and transferred out 164000 Ending work in process - units 27000 Total units accounted for 191000 Equivalent units of production (EUP)- weighted average method Units % Materials EUP- Materials % Conversion EUP-Conversion Units completed and transferred out 164000 100% 164000 100% 164000 Ending work in process - units 27000 100% 27000 80% 21600 Total units 191000 191000 185600 Cost per equivalent unit of production Materials Conversion Cost of beginning work in process 21300 77000 Costs incurred this period 160150 813880 Total costs Costs 181450 Costs 890880 ÷ Equivalent units of production EUP 191000 EUP 185600 Cost per equivalent unit of production (rounded to 2 decimals) 0.95 4.8 Total costs accounted for: Cost of units transferred out: EUP Cost per EUP Total cost Direct materials 164000 0.95 155800 Conversion 164000 4.8 787200 Total costs transferred out 943000 Costs of ending work in process EUP Cost per EUP Total cost Direct materials 27000 $0.95 $25650 Conversion 21600 $4.80 103680 Total cost of ending work in process 129330 Total costs accounted for 1072330

The journal entry dated October 31 to transfer the cost of the completed units to finished goods inventory:

	Date General Journal Debit Credit Oct 31 Finished Goods inventory 943000 Work in Process Inventory 943000