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., 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. 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. 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 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., 800 units, 30% completed Apr. 30 Cooking Dept., 7,800 units at $4.40 Apr. 30 Direct labor Apr. 30 Factory overhead Apr. 30 Finished goods Apr. 30 Bal., 550 units, 90% completed 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 31 Balance May 31 Cooking Dept., 9,600 units at $4.60 May 31 Direct labor May 31 Factory overhead May 31 Finished goods May 31 Bal., 300 units, 35% completed 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

Solotion 1:
Account	Work in Pocess- Filling Department
				Balance
Date	Item	Debit	Credit	Debit	Credit
01-Apr	Balance			$3,860
30-Apr	Cooking department	$34,320		$38,180
30-Apr	Direct labor	8562		$46,742
30-Apr	Factory Overhead	6387		$53,129
30-Apr	Finished Goods		$49,818	$3,311
30-Apr	Ending balance			$3,311

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	800
Received from Cooking Department	7800
Total units accounted for by the Filling Department	8600
Units to be assigned costs:
Inventory in process, April 1	800	0	560
Started and completed in April (7800-550)	7250	7250	7250
Transferred to Finished goods in april	8050	7250	7810
Inventory in process, April 30	550	550	495
Total units to be assigned costs	8600	7800	8305
COSTS	Costs
Direct Materials	Conversion	Total
Cost per equivalent unit:
Total costs for April in Filling Department	$34,320	$14,949
/Total equivalent units	7800	8305
Cost per equivalent unit	$4.40	$1.80	$6.20
Costs assigned to production:
Inventory in process, April 1			$3,860
Costs incurred in April			$49,269
Total costs accounted for by the Filling Department			$53,129
Costs allocated to completed and partially completed units:
Inventory in process, April 1-balance			$3,860
To complete inventory in process, April 1	$0	$1,008	$1,008
Cost of completed April 1 work in process			$4,868
Started and completed in April	$31,900	$13,050	$44,950
Transferred to Finished goods in April			$49,818
Inventory in process, April 30	$2,420	$891	$3,311
Total costs assigned by the Filling Department			$53,129

Solution 2:
Account	Work in Pocess- Filling Department
				Balance
Date	Item	Debit	Credit	Debit	Credit
01-May	Balance			$3,311
31-May	Cooking department	$44,160		$47,471
31-May	Direct labor	12042		$59,513
31-May	Factory Overhead	6878		$66,391
31-May	Finished Goods		$64,801	$1,590
31-May	Ending Balance			$1,590

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	550
Received from Cooking Department	9600
Total units accounted for by the Filling Department	10150
Units to be assigned costs:
Inventory in process, May 1	550	0	55
Started and completed in May	9300	9300	9300
Transferred to Finished goods in May	9850	9300	9355
Inventory in process, May 31	300	300	105
Total units to be assigned costs	10150	9600	9460
COSTS	Costs
Direct Materials	Conversion	Total
Cost per equivalent unit:
Total costs for May in Filling Department	$44,160	$18,920
/Total equivalent units	9600	9460
Cost per equivalent unit	$4.60	$2.00	$6.60
Costs assigned to production:
Inventory in process, May 1			$3,311
Costs incurred in April			$63,080
Total costs accounted for by the Filling Department			$66,391
Costs allocated to completed and partially completed units:
Inventory in process, May 1-balance			$3,311
To complete inventory in process, May 1	$0	$110	$110
Cost of completed May 1 work in process			$3,421
Started and completed in May	$42,780	$18,600	$61,380
Transferred to Finished goods in May			$64,801
Inventory in process, May 30	$1,380	$210	$1,590
Total costs assigned by the Filling Department			$66,391