Question
In: Accounting
The inventory of Work in Process—Rolling on September 1 and debits to the account during September...
The inventory of Work in Process—Rolling on September 1 and debits to the account during September were as follows:
| Bal., 800 units, 20% completed: | ||
| Direct materials (800 x $7.2) | $ 5,760 | |
| Conversion (800 x 20% x $3) | 480 | |
| $ 6,240 | ||
| From Smelting Department, 17,920 units | $130,816 | |
| Direct labor | 36,189 | |
| Factory overhead | 19,487 | |
During September, 800 units in process on September 1 were completed, and of the 17,920 units entering the department, all were completed except 1,500 units that were 60% completed. Charges to Work in Process—Rolling for October were as follows:
| From Smelting Department, 20,600 units | $154,500 |
| Direct labor | 43,890 |
| Factory overhead | 23,630 |
During October, the units in process at the beginning of the month were completed, and of the 20,600 units entering the department, all were completed except 1,000 units that were 90% completed.
Required:
1. Enter the balance as of September 1 in a four-column account for Work in Process—Rolling. Record the debits and the credits in the account for September. Construct a cost of production report and present computations for determining (a) equivalent units of production for materials and conversion, (b) costs per equivalent unit, (c) cost of goods finished, differentiating between units started in the prior period and units started and finished in September, and (d) work in process inventory. If an amount box does not require an entry, leave it blank.
| ACCOUNT | Work in Process-Rolling Department | ACCOUNT NO. | ||||
|---|---|---|---|---|---|---|
| BALANCE | ||||||
| DATE | ITEM | POST. REF. | DEBIT | CREDIT | DEBIT | CREDIT |
| Sept. 1 | Bal., 800 units, 20% completed | |||||
| Sept. 30 | Smelting Dept., 17,920 units at $7.3 | |||||
| Sept. 30 | Direct labor | |||||
| Sept. 30 | Factory overhead | |||||
| Sept. 30 | Finished goods | |||||
| Sept. 30 | Bal., 1,500 units, 60% completed | |||||
If an amount is zero, enter in a zero "0". Round cost per unit answers to the nearest cent.
| Pittsburgh Aluminum Company Cost of Production Report-Rolling Department For the Month Ended September 30 |
|||
|---|---|---|---|
| Whole Units | Equivalent Units | ||
| Units | Direct Materials (a) | Conversion (a) | |
| Units charged to production: | |||
| Inventory in process, September 1 | |||
| Received from Smelting Department | |||
| Total units accounted for by the Rolling Department | |||
| Units to be assigned costs: | |||
| Inventory in process, September 1 | |||
| Started and completed in September | |||
| Transferred to finished goods in September | |||
| Inventory in process, September 30 | |||
| Total units to be assigned costs | |||
| Costs | ||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Costs | Direct Materials | Conversion | Total Costs | |||||||||
| Cost per equivalent unit: | ||||||||||||
| Total costs for September in Rolling Department | $ | $ | ||||||||||
| Total equivalent units | ||||||||||||
| Cost per equivalent unit (b) | $ | $ | ||||||||||
| Costs assigned to production: | ||||||||||||
| Inventory in process, September 1 | $ | |||||||||||
| Costs incurred in September | ||||||||||||
| Total costs accounted for by the Rolling Department | $ | |||||||||||
| Costs allocated to completed and partially completed units: | ||||||||||||
| Inventory in process, September 1 balance (c) | $ | |||||||||||
| To complete inventory in process, September 1 (c) | $ | $ | ||||||||||
| Cost of completed September 1 work in process | $ | |||||||||||
| Started and completed in September (c) | $ | |||||||||||
| Transferred to finished goods in September (c) | $ | |||||||||||
| Inventory in process, September 30 (d) | ||||||||||||
| Total costs assigned by the Rolling Department | $ | |||||||||||
2. Provide the same information for October by recording the October transactions in the four-column work in process account. Construct a cost of production report, and present the October computations (a through d) listed in part (1). If an amount box does not require an entry, leave it blank.
| ACCOUNT | Work in Process-Rolling Department | ACCOUNT NO. | ||||
|---|---|---|---|---|---|---|
| Balance | ||||||
| DATE | ITEM | POST. REF. | DEBIT | CREDIT | DEBIT | CREDIT |
| October 1 | Balance | |||||
| October 31 | Smelting Dept., 20,600 units at $7.5 | |||||
| October 31 | Direct labor | |||||
| October 31 | Factory overhead | |||||
| October 31 | Finished goods | |||||
| October 31 | Bal., 1,000 units, 90% completed | |||||
| Pittsburgh Aluminum Company Cost of Production Report-Rolling Department For the Month Ended October 31 |
|||
|---|---|---|---|
| Whole Units | Equivalent Units | ||
| Units | Direct Materials (a) | Conversion (a) | |
| Units charged to production: | |||
| Inventory in process, October 1 | |||
| Received from Smelting Department | |||
| Total units accounted for by the Rolling Department | |||
| Units to be assigned costs: | |||
| Inventory in process, October 1 | |||
| Started and completed in October | |||
| Transferred to finished goods in October | |||
| Inventory in process, October 31 | |||
| Total units to be assigned costs | |||
Solutions
Expert Solution
| 1 | ACCOUNT | Work in Process-Rolling Department | ACCOUNT NO. | |||||||
| BALANCE | Balance | |||||||||
| DATE | ITEM | POST. REF. | DEBIT | CREDIT | DEBIT | CREDIT | ||||
| Sept. 1 | Bal., 800 units, 20% completed | 6240 | ||||||||
| Sept. 30 | Smelting Dept., 17,920 units at $7.3 | 130816 | 137056 | |||||||
| Sept. 30 | Direct labor | 36189 | 173245 | |||||||
| Sept. 30 | Factory overhead | 19487 | 192732 | |||||||
| Sept. 30 | Finished goods | 178992 | 13740 | |||||||
| (Ref cost of production report) | ||||||||||
| Sept. 30 | Bal., 1500 units,60% completed | 13740 | ||||||||
| Pittsburgh Aluminum Company | ||||||||||
| Cost of Production Report-Rolling Department | ||||||||||
| For the Month Ended September 30 | ||||||||||
| Whole Units | Equivalent Units | |||||||||
| Units | Direct Materials (a) | Conversion (a) | ||||||||
| Units charged to production: | ||||||||||
| Inventory in process, September 1 | 800 | |||||||||
| Received from Smelting Department | 17920 | |||||||||
| Total units accounted for by the Rolling Department | 18720 | |||||||||
| Units to be assigned costs: | ||||||||||
| Inventory in process, September 1 | (20% completed) | 800 | 0 | 640 | ||||||
| 800*(100%-100%) | 800*(100%-20%) | |||||||||
| Started and completed in September | (17720-800) | 16420 | 16420 | 16420 | ||||||
| (16420*100%) | (16420*100%) | |||||||||
| Transferred to finished goods in September | (18720-1500) | 17220 | 16420 | 17060 | ||||||
| Inventory in process, Sep 30 | (60% completed) | 1500 | 1500 | 900 | ||||||
| (1500*100%) | (1500*60%) | |||||||||
| Total units to be assigned costs | 18720 | 17920 | 17960 | |||||||
| Costs | ||||||||||
| Costs | Direct Materials | Conversion | Total | |||||||
| Cost per equivalent unit: | ||||||||||
| Total costs for September in Rolling Department |
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