14

Hearty Soup Co. uses a process cost system

A type of cost system that accumulates costs for each of the various departments within a manufacturing facility.

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 2016 were as follows:

Bal., 700 units, 30% completed:
Direct materials (700 $4.6)	$3,220
Conversion (700 30% $1.75)	368
	$3,588
From Cooking Department, 7,400 units	$34,780
Direct labor	8,512
Factory overhead	2,464

During April, 700 units in process on April 1 were completed, and of the 7,400 units entering the department, all were completed except 500 units that were 90% completed.

Charges to Work in Process-Filling for May were as follows:

From Cooking Department, 9,500 units	$46,550
Direct labor	12,030
Factory overhead	2,834

1(a).	Enter the balance as of April 1, 2016, in a four-column account for Work in Process-Filling. Record the debits and the credits in the account for April.
2(a).	Provide the same information for May by recording the May transactions in the four-column work in process account.

Question not attempted.

Work in Process-Filling

1	Date	Item	Debit	Credit	Balance Dr.	Balance Cr.
2	Apr. 1	Balance
3	30	Cooking Department
4	30	Direct labor
5	30	Factory overhead
6	30	Finished goods
7	30	Balance
8	May 31	Cooking Department
9	31	Direct labor
10	31	Factory overhead
11	31	Finished goods
12	31	Balance

HEARTY SOUP CO.
Cost of Production Report-Filling Department
For the Month Ended April 30, 2016
UNITS	Whole Units	Equivalent Units
		Direct Materials	Conversion
Units to account for during production:
Inventory in process, April 1
Received from Milling Department
Total units accounted for by the Filling Department
Units to be assigned costs:
Inventory in process, April 1 (30% completed)
Started and completed in April
Transferred to finished goods in April
Inventory in process, April 30 (90% completed)
Total units to be assigned costs

Points:

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Explanation

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