Question

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. record the transfer of goods to next department. transferred out

Answer 1

Answer:

Explanation

since the direct materials falls under assets and now in this case are being transferred out of fast co. they must be credited because they are no longer resources or owned by fast co

Answer 2

Answer:

See the answer in the explanation below

Explanation:

 Date:                  The Work in Process Inventory-Cutting account

October  1                           Direct material $17,100

                                           Conversion cost $67,200

                                            Balance               84,300

Transfer to next department

Debit                                                               Credit

Conversion cost 67200                   Direct material 17100