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.
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter3: Process Cost Systems
Section: Chapter Questions
Problem 5E: The Converting Department of Worley Company had 2,400 units in work in process at the beginning of...
Related questions
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.
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 2 steps
Recommended textbooks for you
Managerial Accounting
Accounting
ISBN:
9781337912020
Author:
Carl Warren, Ph.d. Cma William B. Tayler
Publisher:
South-Western College Pub
Cornerstones of Cost Management (Cornerstones Ser…
Accounting
ISBN:
9781305970663
Author:
Don R. Hansen, Maryanne M. Mowen
Publisher:
Cengage Learning
Principles of Cost Accounting
Accounting
ISBN:
9781305087408
Author:
Edward J. Vanderbeck, Maria R. Mitchell
Publisher:
Cengage Learning
Managerial Accounting
Accounting
ISBN:
9781337912020
Author:
Carl Warren, Ph.d. Cma William B. Tayler
Publisher:
South-Western College Pub
Cornerstones of Cost Management (Cornerstones Ser…
Accounting
ISBN:
9781305970663
Author:
Don R. Hansen, Maryanne M. Mowen
Publisher:
Cengage Learning
Principles of Cost Accounting
Accounting
ISBN:
9781305087408
Author:
Edward J. Vanderbeck, Maria R. Mitchell
Publisher:
Cengage Learning
Principles of Accounting Volume 2
Accounting
ISBN:
9781947172609
Author:
OpenStax
Publisher:
OpenStax College
Managerial Accounting: The Cornerstone of Busines…
Accounting
ISBN:
9781337115773
Author:
Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:
Cengage Learning