Chapter 20 Problem Set eBook 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., 600 units, 80% completed: Direct materials (600 x $5.00) Conversion (600 x 80% x $2.10) From Cooking Department, 13,620 units $ 3,000 1,008 $ 4,008 $69,462 Direct labor Factory overhead 18,647 10,041 During April, 600 units in process on April 1 were completed, and of the 13,620 units entering the department, all were completed except 1,000 units that were 30% completed. Charges to Work in Process-Filling for May were as follows: From Cooking Department, 15,700 units Direct labor Factory overhead $83,210 23,800 12,816 During May, the units in process at the beginning of the month were completed, and of the 15,700 units entering the department, all were completed except 800 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 DATE ITEM Apr. 1 Bal., 600 units, 80% completed 30 Cooking Dept., 13,620 units at $5.10 30 Direct labor 30 Factory overhead 30 Finished goods 30 Bal., 1,000 units, 30% completed ACCOUNT NO. POST. REF. DEBIT CREDIT DEBIT If an amount box does not require an entry, leave it blank. Round cost per unit answers to the nearest cent. Hearty Soup Co. Cost of Production Report-Filling Department For the Month Ended April 30 Units Units charged to production: Inventory in process, April 1 Received from Cooking Department Total unite accounted for by the Filling Donartment Whole Units Equivalent Units Direct Materials (a) Conversion (a) BALANCE CREDIT 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 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) Costs Direct Materials Conversion Total 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 DATE Work in Process-Filling Department ACCOUNT NO. Balance ITEM POST. REF. DEBIT CREDIT DEBIT CREDIT May 1 Balance 31 Cooking Dept., 15,700 units at $5.3 31 Direct labor 31 Factory overhead 31 Finished goods 31 Bal., 800 units, 40% completed If an amount box does not require an entry, leave it blank. Round cost per unit answers to the nearest cent. Hearty Soup Co. Cost of Production Report-Filling Department For the Month Ended May 31 Units 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 Whole Units Equivalent Units Direct Conversion Materials (a) (a) Costs Costs per equivalent unit: Total costs for May in Filling Department Total equivalent units Cost per equivalent unit (b) Costs charged to production: Inventory in process, May 1 Costs incurred in May Total costs accounted for by the Filling Department Cost allocated to completed and partially completed units: Inventory in process, May 1 balance (c) To complete inventory in process, May 1 (c) Cost of completed May 1 work in process Started and completed in May (c) Transferred to finished goods in May (c) Inventory in process, May 31 (d) Total costs assigned by the Filling Department 3. The cost per equivalent unit for direct materials Direct Materials Costs Conversion Total from March to May. The cost per equivalent unit for conversion costs from March to May. These changes be investigated for their underlying causes, and any necessary corrective actions should be taken