Question

Hearty Soup Co. uses a process cost system to record the costs of processing soup, which requires the cooking and filling processes. Materials are entered from the cooking process at the beginning of the filling process. The inventory of Work in Process-Filling on April 1 and debits to the account during April were as follows:

Bal., 800 units, 30% completed:
Direct materials (800 × $4.30)	$3,440
Conversion (800 × 30% × $1.75)	420
	$3,860
From Cooking Department, 7,800 units	$34,320
Direct labor	8,562
Factory overhead	6,387

During April, 800 units in process on April 1 were completed, and of the 7,800 units entering the department, all were completed except 550 units that were 90% completed.

Charges to Work in Process-Filling for May were as follows:

From Cooking Department, 9,600 units	$44,160
Direct labor	12,042
Factory overhead	6,878

During May, the units in process at the beginning of the month were completed, and of the 9,600 units entering the department, all were completed except 300 units that were 35% completed.

	Required:
1.	(a) Enter the balance as of April 1, in a four-column account for Work in Process-Filling. Record the debits and the credits in the account for April. (b) Construct a cost of production report, and present computations for determining i. equivalent units of production for materials and conversion. ii. costs per equivalent unit.* iii. cost of goods finished, differentiating between units started in the prior period and units started and finished in April.* iv. work in process inventory.* * If an amount is zero, enter "0". Round your cost per unit answers to the nearest cent.
2.	(a) Provide the same information for May by recording the May transactions in the four-column work in process account. (b) Construct a cost of production report, and present the May computations (i through iv) listed in part 1(b).
3.	Comment on the change in costs per equivalent unit for March through May for direct materials and conversion costs.

Work in Process-Filling Account

Shaded cells have feedback.

1(a).	Enter the balance as of April 1, in a four-column account for Work in Process-Filling. Record the debits and the credits in the account for April.
2(a).	Provide the same information for May by recording the May transactions in the four-column work in process account.

Score: 22/95

Work in Process-Filling

1	Date	Item	Debit	Credit	Balance Dr.	Balance Cr.
2	Apr. 1	Balance			✔
3	30	Cooking Department
4	30	Direct labor
5	30	Factory overhead
6	30	Finished goods
7	30	Balance
8	May 31	Cooking Department
9	31	Direct labor
10	31	Factory overhead
11	31	Finished goods
12	31	Balance

Points:

4.4 / 19

Feedback

Check My Work

1(a) and 2(a). Credit amounts are determined from the supporting cost of production reports.

Cost of Production Report - April

Shaded cells have feedback.

1(b).

Construct a cost of production report, and present computations for determining i. equivalent units of production for materials and conversion. ii. costs per equivalent unit.* iii. cost of goods finished, differentiating between units started in the prior period and units started and finished in April.* iv. work in process inventory.* * If an amount is zero, enter "0". Round your cost per unit answers to the nearest cent.

HEARTY SOUP CO.
Cost of Production Report-Filling Department
For the Month Ended April 30
UNITS	Whole Units	Equivalent Units
		Direct Materials	Conversion
Units charged to production:
Inventory in process, April 1
Received from Cooking Department
Total units accounted for by the Filling Department
Units to be assigned costs:
Inventory in process, April 1 (30% completed)
Started and completed in April
Transferred to finished goods in April
Inventory in process, April 30 (90% completed)
Total units to be assigned costs

Points:

0 / 18

Feedback

Check My Work

1(b). Calculate equivalent units for materials and conversion costs.

COSTS	Costs
	Direct Materials	Conversion	Total
Cost per equivalent unit:
Total production costs for April in Filling Department
Total equivalent units	÷	÷
Cost per equivalent unit
Costs assigned to production:
Inventory in process, April 1
Costs incurred in April
Total costs accounted for by the Filling Department
Cost allocated to completed and
partially completed units:
Inventory in process, April 1 balance
To complete inventory in process, April 1
Cost of completed April 1 work in process
Started and completed in April
Transferred to finished goods in April
Inventory in process, April 30
Total costs assigned by the Filling Department

Points:

0 / 22

Feedback

Check My Work

1(b). Calculate the cost per equivalent unit for materials and conversion costs. Calculate the costs assigned to the beginning inventory, the units started and completed, and the ending inventory.

Cost of Production Report - May

Shaded cells have feedback.

2(b).

Construct a cost of production report, and present computations for determining i. equivalent units of production for materials and conversion ii. costs per equivalent unit* iii. cost of goods finished, differentiating between units started in the prior period and units started and finished in April* iv. work in process inventory.* * If an amount is zero, enter "0". Round your cost per unit answers to the nearest cent.

HEARTY SOUP CO.
Cost of Production Report-Filling Department
For the Month Ended May 31
UNITS	Whole Units	Equivalent Units
		Direct Materials	Conversion
Units charged to production:
Inventory in process, May 1
Received from Cooking Department
Total units accounted for by the Filling Department
Units to be assigned costs:
Inventory in process, May 1 (90% completed)
Started and completed in May
Transferred to finished goods in May
Inventory in process, May 31 (35% completed)
Total units to be assigned costs

Points:

0 / 18

Feedback

Check My Work

2(b). Calculate equivalent units for materials and conversion costs.

COSTS	Costs
	Direct Materials	Conversion	Total
Costs per equivalent unit:
Total costs for May in Filling Department
Total equivalent units	÷	÷
Cost per equivalent unit
Costs assigned to production:
Inventory in process, May 1
Costs incurred in May
Total costs accounted for by the Filling Department
Costs allocated to completed and
partially completed units:
Inventory in process, May 1 balance
To complete inventory in process, May 1
Cost of completed May 1 work in process
Started and completed in May
Transferred to finished goods in May
Inventory in process, May 31
Total costs assigned by the Filling Department

Points:

0 / 22

Feedback

Check My Work

2(b). Calculate the cost per equivalent unit for materials and conversion costs. Calculate the costs assigned to the beginning inventory, the units started and completed, and the ending inventory.

Final Question

Shaded cells have feedback.

3. The cost per equivalent unit for direct materials from March to May. The cost per equivalent unit for conversion costs from March to May. These changes be investigated for their underlying causes, and any necessary corrective actions should be taken.

Points:

0 / 3

Feedback

Check My Work

3. Compare the costs per equivalent unit for March through May. The costs per equivalent units for materials and conversion for March are in the April 1 work in process inventory.

Hello. Please answer questions filling in the blanks or excel. Thank you!

Answer 1

Work In Process Filling
Date	Item	Debit	Credit	Balance Dr.	Balance Cr.
Apr 1	Balance 800 units 30% completed			3,860
Apr 30	From Cooking Department , 7,800 units	34,320	-	38,180
30	Direct labor	8,562	-	46,742
30	Factory Overhead	6,387	-	53,129
30	Finished Goods	-	49,818	3,31
Apr 30	Balance 550 units 90% completed			3,311
May 31	From Cooking Department 9,600 Units	44,160	-	47,471
31	Direct labor	12,042	-	59,513
31	Factory Overhead	6,878	-	66,391
31	Finished Goods		64,801	1,590
May 31	Balance 300 units 35% completed			1,590

1 (b)

HEARTY SOUP CO.
Cost of Production Report –Filling Department
For the month ended April 30
Units	Whole Units	Equivalents Units
		Direct Materials	Conversion
Units Charged to production:
Inventory in process, April 1	800
Received from cooking department	7,800
Total Units accounted for by the filling department	8,600
Inventory in Process, April 1 (30% Completed)	800		560
Started and completed in April	7,250	7,250	7,250
Transferred to Finished goods in April	8,050	7,250	7,810
Inventory in process, April 30 (90% completed)	550	550	495
Total Units to be assigned to costs	8,600	7,800	8,305

Working Notes:

1. Inventory in process, April 30 conversion = 800*70% = 560 units

2. Units started and completed in April = (Units received from cooking department – Closing stock)

= (7,800-550) = 7,250

Costs	Costs
	Direct Materials	Conversion	Total
Cost per equivalent unit:
Total production costs for April in Filling department	34,320	14,949
	÷	÷
Total Equivalent Units	7,800	8,305
Cost per equivalent unit	4.40	1.80
Cost assigned to production:
Inventory in process April 1	3,440	420	3,860
Cost Incurred in April	34,320	14,949	49,269
Total costs accounted for by the Filling department	37,760	15,369	53,129
Cost allocated to completed and
Partially completed units:
Inventory in Process, April 1	3,440	420	3,860
To complete inventory in process April 1 (560*1.80)	-	1,008	1,008
Cost of Completed April 1 work in process	3,440	1,428	4,868
Started and completed in April Direct Material = 7,250* 4.40 Conversion = 7,250*1.80	31,900	13,050	44,950
Transferred to finished goods in April	35,340	14,478	49,818
Inventory in process, April 30 Direct Material = 550* 4.40 Conversion = 495*1.80	2,420	891	3,311
Total Costs assigned by the Filling department	37,760	15,369	53,129

2 (b)

HEARTY SOUP CO.
Cost of Production Report –Filling Department
For the month ended May 31
Units	Whole Units	Equivalents Units
		Direct Materials	Conversion
Units Charged to production:
Inventory in process, May 1	550
Received from cooking department	9,600
Total Units accounted for by the filling department	10,150
Inventory in Process, April 1 (90% Completed)	550	-	55
Started and completed in April	9,300	9,300	9,300
Transferred to Finished goods in April	9,850	9,300	9,355
Inventory in process, April 30 (35% completed)	300	300	105
Total Units to be assigned to costs	10,150	9,600	9,460

1. Inventory in process, May 31 conversion = 550*10% = 55 units

2. Units started and completed in May = (Units received from cooking department – Closing stock)

= (9,600-300) = 9,300

Costs	Costs
	Direct Materials	Conversion	Total
Cost per equivalent unit:
Total production costs for May in Filling department	44,160	18,920
	÷	÷
Total Equivalent Units	9,600	9,460
Cost per equivalent unit	4.60	2.00
Cost assigned to production:
Inventory in process May 1	2,420	891	3,311
Cost Incurred in May	44,160	18,920	63,080
Total costs accounted for by the Filling department	46,580	19,811	66,391
Cost allocated to completed and
Partially completed units:
Inventory in Process ,May 1	2,420	891	3,311
To complete inventory in process May 1 (55*2.00)	-	110	110
Cost of Completed May 1 work in process	2,420	1,001	3,421
Started and completed in May Direct Material = 9,300* 4.60 Conversion = 9,300*2.00	42,780	18,600	61,380
Transferred to finished goods in May	45,200	19,601	64,801
Inventory in process, May 31 Direct Material = 300* 4.60 Conversion = 105*2.00	1,380	210	1,590
Total Costs assigned by the Filling department	46,580	19,811	66,391

3. Cost of per equivalent unit of direct material increased from $4.30 in March to $4.40 in April and to $ 4.60 in May.

Cost of per equivalent unit of conversion increased from $1.75 in March to $1.80 in April and to $2.00 in May.