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Work in Process Account Data for Two Months; Cost of Production Reports Pittsburgh Aluminum Company uses...
Work in Process Account Data for Two Months; Cost of Production Reports
Pittsburgh Aluminum Company uses a process cost system to record the costs of manufacturing rolled aluminum, which consists of the smelting and rolling processes. Materials are entered from smelting at the beginning of the rolling process. The inventory of Work in Process—Rolling on September 1 and debits to the account during September were as follows:
Bal., 400 units, 30% completed:
Direct materials (400 x $3.1)$ 1,240
Conversion (400 x 30% x $1.3)156
$ 1,396
From Smelting Department, 9,320 units$29,824
Direct labor8,672
Factory overhead4,670
During September, 400 units in process on September 1 were completed, and of the 9,320 units entering the department, all were completed except 700 units that were 90% completed. Charges to Work in Process—Rolling for October were as follows:
From Smelting Department, 10,700 units$36,380
Direct labor10,720
Factory overhead5,765
During October, the units in process at the beginning of the month were completed, and of the 10,700 units entering the department, all were completed except 500 units that were 60% 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.
ACCOUNTWork in Process-Rolling Department ACCOUNT NO.
BALANCE
DATEITEMPOST. REF.DEBITCREDITDEBITCREDIT
Sept. 1Bal., 400 units, 30% completed
Sept. 30Smelting Dept., 9,320 units at $3.2
Sept. 30Direct labor
Sept. 30Factory overhead
Sept. 30Finished goods
Sept. 30Bal., 700 units, 90% 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 UnitsEquivalent 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.
ACCOUNTWork in Process-Rolling Department ACCOUNT NO.
Balance
DATEITEMPOST. REF.DEBITCREDITDEBITCREDIT
October 1Balance
October 31Smelting Dept., 10,700 units at $3.4
October 31Direct labor
October 31Factory overhead
October 31Finished goods
October 31Bal., 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 October 31
Whole UnitsEquivalent 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
Costs
Costs Direct Materials Conversion Total Costs
Cost per equivalent unit:
Total costs for October in Rolling Department $ $
Total equivalent units
Cost per equivalent unit (b) $ $
Costs assigned to production:
Inventory in process, October 1 $
Costs incurred in October
Total costs accounted for by the Rolling Department $
Costs allocated to completed and partially completed units:
Inventory in process, October 1 balance (c) $
To complete inventory in process, October 1 (c) $ $
Cost of completed October 1 work in process $
Started and completed in October (c)
Transferred to finished goods in October (c) $
Inventory in process, October 31 (d)
Total costs assigned by the Rolling Department $
3. The cost per equivalent unit for direct materials increased from August to October. The cost per equivalent unit for conversion costs increased from August to October. These changes should be investigated for their underlying causes, and any necessary corrective actions should be taken.
Feedback
Costs accumulate in each department before being transferred to finished goods. There are three types of inventory; materials, work in process, and finished goods.
Calculate equivalent units for materials and conversion costs. 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. Compare the costs per equivalent unit for January through October. The costs per equivalent units for materials and conversion for January are in the September 1 work in process inventory.
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., 400 units, 30% completed | 1396 | ||||||||
| Sept. 30 | Smelting Dept., 9,320 units at $3.2 | 29824 | 31220 | |||||||
| Sept. 30 | Direct labor | 8672 | 39892 | |||||||
| Sept. 30 | Factory overhead | 4670 | 44562 | |||||||
| Sept. 30 | Finished goods | 41440 | 3122 | |||||||
| (Ref cost of production report) | ||||||||||
| Sept. 30 | Bal., 700 units,90% completed | 3122 | ||||||||
| 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 | 400 | |||||||||
| Received from Smelting Department | 9320 | |||||||||
| Total units accounted for by the Rolling Department | 9720 | |||||||||
| Units to be assigned costs: | ||||||||||
| Inventory in process, September 1 | (30% completed) | 400 | 0 | 280 | ||||||
| 400*(100%-100%) | 400*(100%-30%) | |||||||||
| Started and completed in September | (9020-400) | 8620 | 8620 | 8620 | ||||||
| (8620*100%) | (8620*100%) | |||||||||
| Transferred to finished goods in September | (9720-700) | 9020 | 8620 | 8900 | ||||||
| Inventory in process, Sep 30 | (90% completed) | 700 | 700 | 630 | ||||||
| (700*100%) | (700*90%) | |||||||||
| Total units to be assigned costs | 9720 | 9320 | 9530 | |||||||
| Costs | ||||||||||
| Costs | Direct Materials | Conversion | Total | |||||||
| Cost per equivalent unit: | ||||||||||
| Total costs for September in Rolling Department |
 ekkarill92 answered 1 year agoRelated SolutionsWork in Process Account Data for Two Months; Cost of Production Reports Pittsburgh Aluminum Company uses...Work in Process Account Data for Two Months; Cost of Production
Reports
Pittsburgh Aluminum Company uses a process cost system to record
the costs of manufacturing rolled aluminum, which consists of the
smelting and rolling processes. Materials are entered from smelting
at the beginning of the rolling process. The inventory of Work in
Process—Rolling on September 1 and debits to the account during
September were as follows:
Bal., 400 units, 30% completed:
Direct materials (400 x $3.1)$ 1,240
Conversion (400...
Work in Process Account Data for Two Months; Cost of Production Reports Pittsburgh Aluminum Company uses...Work in Process Account Data for Two Months; Cost of Production
Reports
Pittsburgh Aluminum Company uses a process cost system to record
the costs of manufacturing rolled aluminum, which consists of the
smelting and rolling processes. Materials are entered from smelting
at the beginning of the rolling process. The inventory of Work in
Process—Rolling on September 1 and debits to the account during
September were as follows:
Bal., 600 units, 30% completed:
Direct materials (600 x $7.2)
$ 4,320
Conversion...
Work in Process Account Data for Two Months; Cost of Production Reports Pittsburgh Aluminum Company uses...Work in Process Account Data for Two Months; Cost of Production
Reports
Pittsburgh Aluminum Company uses a process cost system to record
the costs of manufacturing rolled aluminum, which consists of the
smelting and rolling processes. Materials are entered from smelting
at the beginning of the rolling process. 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 $4.6) $ 3,680
Conversion...
Work in Process Account Data for Two Months; Cost of Production Reports Pittsburgh Aluminum Company uses...Work in Process Account Data for Two Months; Cost of Production
Reports
Pittsburgh Aluminum Company uses a process cost system to record
the costs of manufacturing rolled aluminum, which consists of the
smelting and rolling processes. Materials are entered from smelting
at the beginning of the rolling process. The inventory of Work in
Process—Rolling on September 1 and debits to the account during
September were as follows:
Bal., 2,600 units, ¼ completed:
Direct materials (2,600 x $15.50)
$40,300
Conversion (2,600...
Work in Process Account Data for Two Months; Cost of Production Reports Pittsburgh Aluminum Company uses...Work in Process Account Data for Two Months; Cost of Production
Reports
Pittsburgh Aluminum Company uses a process cost system to record
the costs of manufacturing rolled aluminum, which consists of the
smelting and rolling processes. Materials are entered from smelting
at the beginning of the rolling process. The inventory of Work in
Process—Rolling on September 1 and debits to the account during
September were as follows:
Bal., 400 units, 30% completed:
Direct materials (400 x $3.1)$ 1,240
Conversion (400...
Work in Process Account Data for Two Months; Cost of Production Reports. Pittsburgh Aluminum Company uses...Work in Process Account Data for Two Months; Cost of Production
Reports. Pittsburgh Aluminum Company uses a process cost system to
record the costs of manufacturing rolled aluminum, which consists
of the smelting and rolling processes. Materials are entered from
smelting at the beginning of the rolling process. The inventory of
Work in Process—Rolling on September 1 and debits to the account
during September were as follows:
Bal., 1,200 units, 20% completed:
Direct materials (1,200 x $4.1)
$ 4,920
Conversion...
Work in Process Account Data for Two Months; Cost of Production Reports Pittsburgh Aluminum Company uses...Work in Process Account Data for Two Months; Cost of Production
Reports
Pittsburgh Aluminum Company uses a process cost system to record
the costs of manufacturing rolled aluminum, which consists of the
smelting and rolling processes. Materials are entered from smelting
at the beginning of the rolling process. The inventory of Work in
Process—Rolling on September 1 and debits to the account during
September were as follows:
Bal., 2,600 units, ¼ completed:
Direct materials (2,600 x $15.50)
$40,300
Conversion (2,600...
Work in Process Account Data for Two Months; Cost of Production Reports Pittsburgh Aluminum Company uses...Work in Process Account Data for Two Months; Cost of Production
Reports
Pittsburgh Aluminum Company uses a process cost system to record
the costs of manufacturing rolled aluminum, which consists of the
smelting and rolling processes. Materials are entered from smelting
at the beginning of the rolling process. The inventory of Work in
Process—Rolling on September 1 and debits to the account during
September were as follows:
Bal., 800 units, 60% completed:
Direct materials (800 x $ 7)
$ 5,600...
Work in Process Account Data for Two Months; Cost of Production Reports Pittsburgh Aluminum Company uses...Work in Process Account Data for Two Months; Cost of Production
Reports Pittsburgh Aluminum Company uses a process cost system to
record the costs of manufacturing rolled aluminum, which consists
of the smelting and rolling processes. Materials are entered from
smelting at the beginning of the rolling process. The inventory of
Work in Process—Rolling on September 1 and debits to the account
during September were as follows: Bal., 2,600 units, ¼ completed:
Direct materials (2,600 x $15.50) $40,300 Conversion (2,600...
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Hearty Soup Co. uses a process cost system to record the costs
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beginning of the filling process. The inventory of Work in
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were as follows:
Bal., 800 units, 30% completed:
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