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 $100,300 as of October 1, which consists of $21,900 of direct materials and $78,400 of conversion costs.

During the month the company incurred the following costs:

Direct materials	$	181,800
Conversion		788,240

During October, the company started 156,000 units and transferred 166,000 units to finished goods. At the end of the month, the work in process inventory consisted of 28,000 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 decimal places.)

(Fill in white boxes.

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

Journal entry worksheet

Record the transfer of goods to finished goods inventory.

Note: Enter debits before credits.

	Date General Journal Debit Credit Oct 31

Answer 1

Requirement-1:
1)
	Total costs to account for:
	Beginning Work in Process				1,00,300
	Costs Incurred during the period				9,70,040
	Total costs to account for:				10,70,340
	Total costs accounted for				10,70,340
	Difference due to rounding cost/unit				0
2)
	Unit Reconcilation:
	Units to account for:
	beginning work in process				38,000
	Units started during the period				1,56,000
	Total Units to account for				1,94,000
	Total units accounted for:
	Units completed and transferred				1,66,000
	Units in ending work in process				28,000
	Total Units accounted for				1,94,000
	Working:
	Units completed				1,66,000
	Ending work in process units				28,000
	Total				1,94,000
	Units started during the period				1,56,000
	Units in Beginning work in process				38,000
3)
	Equivalent Units of production-(EUP)-weighted average method
					Units	% Materials	EUP-Materials	% Conversion	EUP-Conversion
	Units completed				1,66,000	100%	1,66,000	100%	1,66,000
	Units in Ending work in process				28,000	100%	28,000	80%	22,400
	Total Units				1,94,000		1,94,000		1,88,400
4)
	Cost per equivalent unit of production;						Materials		Conversion
	Beginning work in process						$               21,900		$                  78,400
	Cost incurred during the period						$           1,81,800		$               7,88,240
	Total costs						$           2,03,700		$               8,66,640
	Equivalent Units of production						1,94,000		1,88,400
	Cost per euivalent unit						$                   1.05		$                       4.60
5)
	Total Costs accounted for:
	Costs of Units transferred out:					EUP	Cost per EUP	Total Cost
	Direct materials					$       1,66,000	$                         1	$          1,74,300
	Conversion					$       1,66,000	$                         5	$          7,63,600	$               9,37,900
	Total Cost transferred out
	Cost of ending work in process
	Direct materials					$           28,000	$                         1	$             29,400
	Conversion					$           22,400	$                         5	$          1,03,040	$               1,32,440
	Total Cost of ending work in process
	Total Costs accounted for								$            10,70,340
Requirement -2:
	Date		General Journal			Debit	Credit
	Oct 31		Finished Goods Inventory			$       9,37,900
			Work In process inventory				$           9,37,900
			(To record transferring goods to finished goods inventory)