Question

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 welghted average process costing system. The Work In Process Inventory account has a balance of $89,300 as of October 1, which consists of $18,600 of direct materials and $70,700 of conversion costs. During the month the company Incurred the following costs: Direct materials Conversion $141,150 915,400 During October, the company started 145,000 units and transferred 155,000 units to finished goods. At the end of the month, the work In process Inventory consisted of 22,500 units that were 80% complete with respect to conversion costs. Required: 1. Prepare the company's process cost summary for October using the welghted 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.)

Answer 1

Total costs to account for:
Costs of beginning work in process	89300
Costs incurred this period	1056550
Total costs to account for	1145850
Total costs accounted for	1145850
Difference due to rounding cost/unit	0
Unit reconciliation:
Units to account for:
Beginning work in process inventory	32500
Units started this period	145000
Total units to account for	177500
Total units accounted for:
Units completed and transferred out	155000
Ending work in process	22500
Total units accounted for	177500
Equivalent units of production (EUP)- weighted average method
	Units	%Materials	EUP-Materials	%Conversion	EUP-Conversion
Units completed and transferred out	155000	100%	155000	100%	155000
Ending work in process	22500	100%	22500	80%	18000
Total units	177500		177500		173000
Cost per equivalent unit of production			Materials		Conversion
Cost of beginning work in process			18600		70700
Costs incurred this period			141150		915400
Total costs		Costs	159750	Costs	986100
÷ Equivalent units of production		EUP	177500	EUP	173000
Cost per equivalent unit of production			0.90		5.70
Total cost accounted for:
Cost of units transferred out	EUP	Cost per EUP	Total cost
Direct materials	155000	0.90	139500
Conversion	155000	5.70	883500
Total cost transferred out				1023000
	EUP	Cost per EUP	Total cost
Cost of ending work in Process
Direct materials	22500	0.90	20250
Conversion	18000	5.70	102600
Total Cost of ending work in Process				122850
Total cost accounted for				1145850
2
	Debit	Credit
Oct 31   Finished goods inventory	1023000
Work in process inventory		1023000