Fast Co. produces its product through two processing departments. Direct materials are added at the start of production in the Cutting department, and conversion costs are added evenly throughout each process. The company uses monthly reporting periods for its weighted average process costing system. The Work in Process Inventory-Cutting account has a balance of $96,300 as of October 1, which consists of $20,700 of direct materials and $75,600 of conversion costs. During the month, the Cutting department incurred the following costs: Direct materials $ 139,100 1,094,320 Conversion At the beginning of the month, 36,000 units were in process. During October, the company started 152,000 units and transferred 162,000 units to the Assembly department. At the end of the month, the Cutting department's work in process inventory consisted of 26,000 units that were 80% complete with respect to conversion costs. Required: 1. Prepare the Cutting department'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 partially completed units to Assembly Total costs to account for: 0 Total costs to account for: Total costs accounted for Difference due to rounding cost/unit Unit reconciliation: Units to account for: 0 Total units to account for Total units accounted for: Total units accounted for Equivalent unlts 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 EUP EUP - Equivalent units of production Cost per equivalent unit of production 0 Total costs accounted for: Cost of units transferred out: EUP Cost per EUP Total cost Direct materials 10,000 Conversion 20,000 Total costs transferred out Costs of endists work in process EUP Direct materials Cost per EUP Total cost $ 0.00 $ $ 0.00 0 Conversion 0 Total cost of ending work in process Total costs accounted for Required: Required 2 > (The following information applies to the questions displayed below.) Sierra Company manufactures soccer balls in two sequential processes: Cutting and Stitching. All direct materials enter production at the beginning of the Cutting process. The following information is available regarding its May inventories: Work in process inventory-Cutting Work in process inventory-stitching Finished goods inventory Beginning Ending Inventory Inventory 73,500 75,500 93,300 69,900 26,100 14,250 The following additional information describes the company's production activities for May. Direct materials Raw materiale purchased on credit Direct materials used-Cutting Direct materials used-stitching $ 40,000 22,500 0 Direct labor Direct Inbor-Cutting Direct labor-stitching Total factory payroll paid (in canh) $ 17,100 68,400 141,100 Factory Overhead (actual conta) Indirect materials used Indirect labor used other over head coats $ 14,400 55,600 50,000 Factory Overhead Rates Cutting (1501 of direct materials used) stitching (1201 of direct labor used) Sales $376,000 Required: 1. Compute the amount of (a) production costs transferred from Cutting to Stitching. (b) production costs transferred from Stitching to finished goods, and (c) cost of goods sold. Work In Process (WIP) - Cutting Work In Process (WIP) - Stitching Finished Goods (FG)
