Question

Work in Process Account Data for Two Months; Cost of Production Reports

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., 400 units, 80% completed:
	Direct materials (400 x $4.30)	$ 1,720
	Conversion (400 x 80% x $1.80)	576
		$ 2,296
From Cooking Department, 9,720 units		$42,768
Direct labor		11,498
Factory overhead		6,191

During April, 400 units in process on April 1 were completed, and of the 9,720 units entering the department, all were completed except 700 units that were 30% completed. Charges to Work in Process—Filling for May were as follows:

From Cooking Department, 11,200 units	$51,520
Direct labor	14,810
Factory overhead	7,970

During May, the units in process at the beginning of the month were completed, and of the 11,200 units entering the department, all were completed except 500 units that were 40% completed.

Required:

1. Enter the balance as of April 1 in a four-column account for Work in Process—Filling. Record the debits and credits in the account for April. Construct a cost of production report and present computations for determining (a) equivalent units of production for materials and conversion; (b) cost per equivalent unit; (c) cost of goods finished, differentiating between units started in the prior period and units started and finished in April; and (d) work in process inventory. If an amount box does not require an entry, leave it blank.

ACCOUNT	Work in Process-Filling Department				ACCOUNT NO.
					BALANCE
DATE	ITEM	POST. REF.	DEBIT	CREDIT	DEBIT	CREDIT
Apr. 1	Bal., 400 units, 80% completed
30	Cooking Dept., 9,720 units at $4.40
30	Direct labor
30	Factory overhead
30	Finished goods
30	Bal., 700 units, 30% completed

If an amount is zero, enter in a zero "0". Round cost per unit answers to the nearest cent.

Hearty Soup Co. Cost of Production Report-Filling Department For the Month Ended April 30
	Whole Units	Equivalent Units
Units		Direct Materials (a)	Conversion (a)
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
Started and completed in April
Transferred to finished goods in April
Inventory in process, April 30
Total units to be assigned costs

	Costs
Costs		Direct Materials				Conversion				Total
Costs per equivalent unit:
Total costs for April in Filling Department		$				$
Total equivalent units
Cost per equivalent unit (b)		$				$
Costs charged 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 (c)										$
To complete inventory in process, April 1 (c)		$				$
Cost of completed April 1 work in process										$
Started and completed in April (c)
Transferred to finished goods in April (c)										$
Inventory in process, April 30 (d)
Total costs assigned by the Filling Department										$

2. Provide the same information for May by recording the May transactions in the four-column work in process account. Construct a cost of production report and present the May computations (a through d) listed in part (1). If an amount box does not require an entry, leave it blank.

ACCOUNT	Work in Process-Filling Department				ACCOUNT NO.
					Balance
DATE	ITEM	POST. REF.	DEBIT	CREDIT	DEBIT	CREDIT
May 1	Balance
31	Cooking Dept., 11,200 units at $4.6
31	Direct labor
31	Factory overhead
31	Finished goods
31	Bal., 500 units, 40% completed

If an amount is zero, enter in a zero "0". Round cost per unit answers to the nearest cent.

Hearty Soup Co. Cost of Production Report-Filling Department For the Month Ended May 31
	Whole Units	Equivalent Units
Units		Direct Materials (a)	Conversion (a)
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
Started and completed in May
Transferred to finished goods in May
Inventory in process, May 31
Total units to be assigned costs

Answer 1