Foster Co. manufactures a single product in one department. Direct labor and overhead are added evenly throughout the process. Direct materials are added as needed. The company uses monthly reporting periods for its weighted-average process cost accounting. During January, Foster completed and transferred 220,000 units of product to finished goods inventory. Its 10,000 units of beginning goods in process consisted of $8,400 of direct materials, $13,960 of direct labor, and $34,900 of factory overhead. 40,000 units (50% complete with respect to direct materials and 30% complete with respect to direct labor and overhead) are in process at month-end. After entries for direct materials, direct labor, and overhead for January, the company's Goods in Process Inventory account follows.

Required
1. Prepare the company's process cost summary for January.
2. Prepare the journal entry dated January 31 to transfer the cost of completed units to finished goods inventory.
Analysis Components
3. The cost accounting process depends on several estimates.
a. Identify two major estimates that affect the cost per equivalent unit.
b. In what direction might you anticipate a bias from management for each estimate in part 3a (assume that management compensation is based on maintaining low inventory amounts)? Explain youranswer.

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Goods in Process Inventory Explanation Acct. No. 133 Debit Credit Balance Date Jan. Balance 3 Direct materials 3 Direct labor 3 Applied overhead 111.600 76.280 440.700 57,260 68,860 345.140 785.840