Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
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 $85,300 as of October 1, which consists of $17,400 of direct materials and $67,900 of conversion costs. During the month the company incurred the following costs: Direct materials Conversion $136.950 819 320 During October, the company started 141,000 units and transferred 151,000 units to finished goods. At the end of the month, the work in process inventory consisted of 20,500 units that were 80% complete with respect to conversion costs. Required: 1. Prepare the company'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 completed units to finished goods inventory. Prepare the company's process cost summary for October using the weighted average method. (Round "Cost per EUP" to 2 decimal places.) Total costs to account for: Total costs to account for Total costs accounted for Difference due to rounding cost/unit Unit reconciliation: Units to account for: Total units to account for Total units accounted for: Total units accounted for Total units accounted for Equivalent units of production (EUP)-weighted average method Units EUP- % Materials EUP-Materials % Conversion Total units Cost per equivalent unit of production Materials Conversion Costs Costs EUP EUP Total costs + Equivalent units of production Cost per equivalent unit of production (rounded to 2 decimals) 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 Direct materials Cost per EUP $ 0.00 $ 0.00 Total cost $ Conversion Total cost of ending work in process Total costs accounted for Required 1 Required 2 Prepare the journal entry dated October 31 to transfer the cost of the completed units to finished goods inventory. View transaction list Journal entry worksheet Record the transfer of goods to finished goods inventory. Note: Enter debits before credits Date General Journal Debit Credit Oct 31 Record entry Clear entry View general Journal Required

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial Accounting

Authors: David Spiceland

6th Edition

1260786528, 9781260786521

More Books

Students also viewed these Accounting questions

Question

describe the key elements of work;

Answered: 1 week ago