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.