Fast Co. produces its product through a single processing department. Direct materials are added at the start of production

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 $90,300 as of October 1, which consisted of $18,900 of direct materials and $71,400 of conversion costs.

During the month the company incurred the following costs:

Direct materials	$162,400
Conversion	922,400

During October, the company started 146,000 units and transferred 156,000 units to finished goods. At the end of the month, the work in process inventory consisted of 22,400 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.

An economy operating its plant and equipment at full capacity implies a capacity utilization rate of

An economy operating its plant and equipment at full capacity implies a capacity utilization rate of ________. 85 percent
 Explanation:

At the beginning of the section, “Full Employment and Full Production,” we state that utilizing 85 or 90 percent of our plant and equipment would employ virtually all of our usable productive capacity.

The full-production level of our economy implies ________.  an efficient allocation of our resources
 Explanation:

In the section, “Full Employment and Full Production,” we state that “By full production we mean that our nation’s resources are being allocated in the most efficient manner possible.”

The production possibilities curve represents ________.  our economy at full production and full employment
 Explanation:

In the section, “Productive Efficiency,” we state that only on the production possibilities curve can we attain productive efficiency. This is attained when the maximum possible output of any one good is produced, given the output of other goods.

If we are operating inside our production possibilities curve ________.  there is definitely less than full employment
 Explanation:

If our economy is operating on its production possibilities curve, we are at full employment. Therefore, if we are operating inside the curve, there is definitely less than full employment.

The closer we are to the origin and farther away we are from the production possibilities curve ________. the more unemployment there is 

Explanation:

At the origin, we have an unemployment rate of 100%. So as we approach the origin, the more unemployment there is.

Economic growth will occur if any of the following occur except ________. the level of consumption rises and the savings rate falls
 Explanation:

If consumption rises and savings falls, less money will be available for investment in new plant, equipment, and technology. These key elements of economic growth would have less scarce resources to utilize.