Fast Company produces its product through two processing departments: Cutting and Assembly. Information for the Cutting department follows. Beginning work in process inventory Units started this period. Units completed and transferred out Ending work in process inventory Beginning work in process inventory Direct materials Conversion Costs added this period Direct materials Conversion Total costs to account for Required 1 Required 2 Unit reconciliation: Units 1 account for: Units to account for Total units accounted for: Total units accounted for Equivalent units of production (EUP) Equivalent Units of Production Cost per equivalent unit of production Complete this question by entering your answers in the tabs below. Total costs + Equivalent units of production Cost per equivalent unit of production Cost Assignment Units 30,000 140,000 150,000 20,000 Required: 1. Prepare the Cutting department's production cost report for October using the weighted average method. 2. Prepare the October 31 journal entry to transfer the cost of completed units from cutting to Assembly. Completed and transferred out Direct materials Conversion Ending work in process Direct materials Conversion $ 17,100 67,200 Total costs accounted for 144,400 862,400 Prepare the Cutting department's production cost report for October using the weighted average method. (Round "Cost per EUP" to 2 decimal places.) Direct Materials. Conversion Units Percent Complete 100% $ 84,300 1,006,800 $ 1,091,100 < Required 1 FAST COMPANY-Cutting Department Production Cost Report - Weighted Average Method For Month Ended October 31 Percent Complete % Complete 80% Costs EUP Direct Materials EUP Cost per EUP EUP Direct Materials Total cost Required 2 > Conversion % Complete Costs EUP EUP 150,000 Conversion
Fast Company produces its product through two processing departments: Cutting and Assembly. Information for the Cutting department follows. Beginning work in process inventory Units started this period. Units completed and transferred out Ending work in process inventory Beginning work in process inventory Direct materials Conversion Costs added this period Direct materials Conversion Total costs to account for Required 1 Required 2 Unit reconciliation: Units 1 account for: Units to account for Total units accounted for: Total units accounted for Equivalent units of production (EUP) Equivalent Units of Production Cost per equivalent unit of production Complete this question by entering your answers in the tabs below. Total costs + Equivalent units of production Cost per equivalent unit of production Cost Assignment Units 30,000 140,000 150,000 20,000 Required: 1. Prepare the Cutting department's production cost report for October using the weighted average method. 2. Prepare the October 31 journal entry to transfer the cost of completed units from cutting to Assembly. Completed and transferred out Direct materials Conversion Ending work in process Direct materials Conversion $ 17,100 67,200 Total costs accounted for 144,400 862,400 Prepare the Cutting department's production cost report for October using the weighted average method. (Round "Cost per EUP" to 2 decimal places.) Direct Materials. Conversion Units Percent Complete 100% $ 84,300 1,006,800 $ 1,091,100 < Required 1 FAST COMPANY-Cutting Department Production Cost Report - Weighted Average Method For Month Ended October 31 Percent Complete % Complete 80% Costs EUP Direct Materials EUP Cost per EUP EUP Direct Materials Total cost Required 2 > Conversion % Complete Costs EUP EUP 150,000 Conversion
Chapter1: Financial Statements And Business Decisions
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Concept explainers
Process Costing
Process costing is a sort of operation costing which is employed to determine the value of a product at each process or stage of producing process, applicable where goods produced from a series of continuous operations or procedure.
Job Costing
Job costing is adhesive costs of each and every job involved in the production processes. It is an accounting measure. It is a method which determines the cost of specific jobs, which are performed according to the consumer’s specifications. Job costing is possible only in businesses where the production is done as per the customer’s requirement. For example, some customers order to manufacture furniture as per their needs.
ABC Costing
Cost Accounting is a form of managerial accounting that helps the company in assessing the total variable cost so as to compute the cost of production. Cost accounting is generally used by the management so as to ensure better decision-making. In comparison to financial accounting, cost accounting has to follow a set standard ad can be used flexibly by the management as per their needs. The types of Cost Accounting include – Lean Accounting, Standard Costing, Marginal Costing and Activity Based Costing.
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Question
Transcribed Image Text:Fast Company produces its product through two processing departments: Cutting and Assembly. Information for the Cutting
department follows.
Beginning work in process inventory
Units started this period
Units completed and transferred out
Ending work in process inventory
Beginning work in process inventory
Direct materials
Conversion
Costs added this period
Direct materials
Conversion
Total costs to account for
Required 1
Required 2
Unit reconciliation:
Units to account for:
Units to account for
Total units accounted for:
Total units accounted for
Equivalent units of production (EUP)
Equivalent Units of Production
Cost per equivalent unit of production
Units
Total costs
+ Equivalent units of production
Cost per equivalent unit of production
Cost Assignment
Completed and transferred out
Direct materials
Conversion
30,000
140,000
150,000
20,000
Complete this question by entering your answers in the tabs below.
Ending work in process
Direct materials
Conversion
Required:
1. Prepare the Cutting department's production cost report for October using the weighted average method.
2. Prepare the October 31 journal entry to transfer the cost of completed units from cutting to Assembly.
Total costs accounted for
$ 17,100
67,200
144,400
862,400
Prepare the Cutting department's production cost report for October using the weighted average method. (Round "Cost per EUP" to 2 decimal
places.)
Units
Direct
Materials Conversion
EUP
Percent
Complete
100%
$ 84,300
1,006,800
$ 1,091,100
< Required 1
FAST COMPANY-Cutting Department
Production Cost Report - Weighted Average Method
For Month Ended October 31
Percent
Complete
% Complete
80%
Costs
EUP
Direct Materials
Cost per EUP
EUP
Direct Materials
Total cost
Required 2 >
Conversion
% Complete
Costs
EUP
EUP
150,000
Conversion
Transcribed Image Text:Fast Company produces its product through two processing departments: Cutting and Assembly. Information for the Cutting
department follows.
Beginning work in process inventory
Units started this period
Units completed and transferred out
Ending work in process inventory
Beginning work in process inventory
Direct materials
Conversion
Costs added this period
Direct materials
Conversion
Total costs to account for
Required 1
View transaction list
Required 2
Journal entry worksheet
<
1
Complete this question by entering your answers in the tabs below.
Required:
1. Prepare the Cutting department's production cost report for October using the weighted average method.
2. Prepare the October 31 journal entry to transfer the cost of completed units from cutting to Assembly.
Note: Enter debits before credits.
Date
October 31
Units
30,000
140,000
Record the transfer of goods to next department.
150,000
20,000
Record entry
General Journal
$ 17,100
67,200
Prepare the October 31 journal entry to transfer the cost of completed units from cutting to Assembly.
Clear entry
144,400
862,400
Direct
Materials
Percent
Complete
100%
< Required 1
$ 84,300
Conversion
Percent
Complete
1,006,800
$1,091,100
80%
Debit
Credit
View general journal
Required 2 >
Expert Solution
Step 1 Introduction
Equivalent units using Weighted Average Method :— Under this method, equivalent units is the sum of equivalent units transferred out and equivalent units of work in process.
Equivalent units transferred out is calculated by multiplying units transferred out with 100 %.
Equivalent units of work in process inventory is calculated by multiplying units in ending WIP with their stage of completion.
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