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Problem 20-3A Weighted Average: Process cost summary; equivalent units LO C2, C3, P4 Fast Co....

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Accounting

Problem 20-3A 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 $98,100 as of October 1, which consists of $21,000 of direct materials and $77,100 of conversion costs. During the month the company incurred the following costs:

Direct materials $149,550
Conversion 1,120,200

During October, the company started 153,000 units and transferred 163,000 units to finished goods. At the end of the month, the work in process inventory consisted of 26,500 units that were 80% complete with respect to conversion costs. Required: 1. Prepare the companys 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.

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