Prepare the companys process cost summary

Assignment Help Cost Accounting

Reference no: EM131807562

Fast Co. produces its product through a single processing department. Direct materials are added at the start of production, and conversion costs are added evenly throughout the process.

The company uses monthly reporting periods for its weighted-average process costing system.

The Work in Process Inventory account has a balance of $98,300 as of October 1, which consisted of $21,300 of direct materials and $77,000 of conversion costs.

During the month the company incurred the following costs:

Direct materials $186,400

Conversion 1,002,400

During October, the company started 154,000 units and transferred 164,000 units to finished goods. At the end of the month, the work in process inventory consisted of 25,600 units that were 80% complete with respect to conversion costs.

Required:

1. Prepare the company's process cost summary for October using the weighted-average method. (Round "Cost per EUP" to 2 decimal places.)

2. Prepare the journal entry dated October 31 to transfer the cost of the completed units to finished goods inventory.

Reference no: EM131807562

Questions Cloud

Should eddie recommend that purchase of the robot : The robot costs $75,000 installed and will have a salvage value of $5000 after 10 years. Should Eddie recommend that purchase of the robot?

Calculate the value of the relevant test statistic : The following table presents the returns of Fidelity's Select Automotive Fund; the data are also available on the text website, labeled Auto motive.

What is the effective interest rate : What is the effective interest rate? How much interest will he owe in the first month's payment? If he makes monthly payments of $225

Prepare project on mobile communication : Prepare project on Mobile Communication - why they are considered as significant Research problems in computer Science or information technology

Prepare the companys process cost summary : Prepare the companys process cost summary for October using the weighted-average method.

What is the monthly payment : A bank is offering a loan of $25,000 with a nominal interest rate of 18% compoundedmonthly, payable in 60 months.

What effective interest rate is being charged : What is the monthly interest rate? How much will Susan pay each month for 45 months? What effective interest rate is being charged?

Describe economic legal and regulatory forces and trends : Describe economic, legal, and regulatory forces and trends. Analyze and explain the supply chain of the new division of the existing business.

Compute the equivalent interest rate per : The newspaperis published 252 days per year (5 days per week, except holidays). If a 10% nominal annual interest rate, compounded quarterly, is used:

User Account

All Pages