Fast Company produces its product through two processing departments: Cutting and Assembly. Information for the Cutting department follows. Units Direct Materials Conversion Percent Complete Percent Complete Beginning work in process inventory 36,000 Units started this period 152,000 Units completed and transferred out 162,000 Ending work in process inventory 26,000 100% 80% Beginning work in process inventory Direct materials $ 20,700 Conversion 75,600 $ 96,300 Costs added this period Direct materials 139,100 Conversion 1,094,320 1,233,420 Total costs to account for $ 1,329,720 Required: Prepare the Cutting department’s production cost report for October using the weighted average method. Prepare the October 31 journal entry to transfer the cost of completed units from cutting to Assembly.
Fast Company produces its product through two processing departments: Cutting and Assembly. Information for the Cutting department follows. Units Direct Materials Conversion Percent Complete Percent Complete Beginning work in process inventory 36,000 Units started this period 152,000 Units completed and transferred out 162,000 Ending work in process inventory 26,000 100% 80% Beginning work in process inventory Direct materials $ 20,700 Conversion 75,600 $ 96,300 Costs added this period Direct materials 139,100 Conversion 1,094,320 1,233,420 Total costs to account for $ 1,329,720 Required: Prepare the Cutting department’s production cost report for October using the weighted average method. Prepare the October 31 journal entry to transfer the cost of completed units from cutting to Assembly.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Fast Company produces its product through two processing departments: Cutting and Assembly. Information for the Cutting department follows.
Units Direct Materials Conversion
Percent Complete Percent Complete
Beginning work in process inventory 36,000
Units started this period 152,000
Units completed and transferred out 162,000
Ending work in process inventory 26,000 100% 80%
Beginning work in process inventory
Direct materials $ 20,700
Conversion 75,600 $ 96,300
Costs added this period
Direct materials 139,100
Conversion 1,094,320 1,233,420
Total costs to account for $ 1,329,720
Required:
Prepare the Cutting department’s production cost report for October using the weighted average method.
Prepare the October 31 journal entry to transfer the cost of completed units from cutting to Assembly.
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