Problem 16-3A Weighted Average: Process cost summary; equivalentunits LO C2, C3, P4
Fast Co. produces its product through a single processingdepartment. Direct materials are added at the start of production,and conversion costs are added evenly throughout the process. Thecompany uses monthly reporting periods for its weighted-averageprocess costing system. The Work in Process Inventory account has abalance of $104,300 as of October 1, which consists of $23,100 ofdirect materials and $81,200 of conversion costs.
During the month the company incurred the followingcosts:
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| Direct materials | $ | 146,900 |
| Conversion | | 888,800 |
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During October, the company started 160,000 units and transferred170,000 units to finished goods. At the end of the month, the workin process inventory consisted of 30,000 units that were 80%complete with respect to conversion costs.
Required:
1. Prepare the company’s process cost summary forOctober using the weighted-average method.
2. Prepare the journal entry dated October 31 totransfer the cost of the completed units to finished goodsinventory.
Prepare the company’s process cost summary for October using theweighted-average method. (Round "Cost per EUP" to 2 decimalplaces.)
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| | Total costs to account for: | | | | | | | | Total costs to account for: | $0 | | Total costs accounted for | | | Difference due to roundingcost/unit | $0 | | 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 ofproduction | | | Materials | | Conversion | | | | | | | | | | | | | | 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 inprocess | | | | | | | Total costs accountedfor | | | | |
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- Record the transfer of goods to finished goods inventory.
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| | Date | General Journal | Debit | Credit |
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| Oct 31 | | | | | | | | | | | | | | | | | | | | | | | |
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