Hearty Soup Co. uses a process cost system to record the costs of processing soup, which requires a series of three processes. Materials are entered at the beginning of the Filling process. The inventory of Work in Process—Filling on February 1 and debits to the account during February 2010 were as follows:

 Bal., 3,200 units, 30% completed:

Direct materials (3,200 × $4.50)                               $14,400

Conversion (3,200 × 30% × $2.00)                                1,920

                                                                                       $16,320

From Cooking Department, 65,900 units             $303,140

Direct labor                                                                    87,450

Factory overhead                                                          61,908

During February, 3,200 units in process on February 1 were completed, and of the 65,900 units entering the department, all were completed except 2,500 units that were 90% completed.

Charges to Work in Process—Filling for March were as follows:

From Cooking Department, 73,500 units            $352,800

Direct labor                                                                 103,345

Factory overhead                                                         74,530

During March, the units in process at the beginning of the month were completed, and of the 73,500 units entering the department, all were completed except 4,000 units that were 35% completed.

Instructions

1. Enter the balance as of February 1, 2010, in a four-column account for Work in Process—Filling. Record the debits and the credits in the account for February. 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 February, and (d) work in process inventory.

2. Provide the same information for March by recording the March transactions in the four-column work in process account. Construct a cost of production report, and present the March computations (a through d) listed in part (1).

3. Comment on the change in costs per equivalent unit for January through March for direct materials and conversion costs.