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 $84,300 as of October 1, which consists of $17,100 of direct materials and $67,200 of conversion costs. During the month, the Cutting department incurred the following costs: Direct materials $ 144,400 Conversion 862,400 At the beginning of the month, 30,000 units were in process. During October, the company started 140,000 units and transferred 150,000 units to the Assembly department. At the end of the month, the Cutting department's work in process inventory consisted of 20,000 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.

Answer:(1) Total Cost accounted for $1,091,100 (2) Total unit accounted for $340,000 (3)Equivalents unit of production , Total unit $170,000, Total Cost $1,023,900 (4) Cost per equivalent unit $6.02 (5) Cost of unit transferred out $84,300, cost of ending work in process $36,000

Explanation:

(1)Total Cost to be accounted for

$

Cost at beginning work in process 84,300

Cost incurred during the period

( 144,400 + 862,400) 1,006,800

-----------

Total Cost accounted for. 1,091,100

-------------

(2) unit accounted for

Beginning work in process inventory unit 30,000

Unit started this period. 140,000

------------

unit accounted for. 170,000

Unit completed& transferred out. 150,000

Ending work in process inventory unit. 20,000

------------

Total unit accounted for. 340,000

--------------

(3) Equivalent unit of production

Unit completed 150,000

Unit in ending work in process 20,000

------------

Total unit. 170,000

-------------

(4)Cost per equivalent unit of production

Beginning work in process 17,100

Cost incurred during the period 1,006,800

----------------

Total Cost. 1,023,900

----------------

Cost per equivalent unit = Total Cost ÷ equivalent unit of production

= 1,023,900 ÷ 170,000

=$6.02

(5) Cost per unit transferred out

Direct materials. 17,100

Conversion. 67,200

------------

Total Cost transferred out 84,300

-----------

Cost of Ending work in process

Direct materials. 20,000

Conversion( 80% × 20,000) 16,000

-----------

Total Cost of ending work in process. 36,000

------------