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 pro-

cess at the beginning of the filling process. The inventory of Work in ProcessFilling on

Apirl 1 and debits to the account during April 2014 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 ProcessFilling 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.

i

nstructions

1.

Enter the balance as of April 1, 2014, 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.

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).

3.

Comment on the change in costs per equivalent unit for March through May

for direct materials and conversion costs

Work in Process - Filling Department

Balance

Date Item

Item

Debit

Credit

Debit

Credit

Apr. 1 Bal., 800 units, 30% completed

30 Cooking Dept., 7,800 units, $4.40/unit

30 Direct labor

30 Factory overhead

30 Finished goods

Apr. 30 Bal., 550 units, 90% completed

May 31 Cooking Dept., 9,600 units, $4.60/unit

31 Direct labor

31 Factory overhead

31 Finished goods

May 31 Bal., 300 units, 35% completed

HEARTY SOUP CO.

Cost of Production Report - Filling Department

For the Month Ended April 30, 2014

UNITS

Equivalent Units (a)

Whole Units

Direct Materials

Conversion

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 cost:

Inventory in process, April 1 (

complete )

Started and completed in April

Transferred to finished goods in April

Inventory in process, April 30 (

complete )

Total units to be assigned cost

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 assigned to production:

Inventory in process, April 1

Costs incurred in April

Total costs accounted for by the Filling Department

Costs allocated to completed and partially completed units:

Inventory in process, April 1 (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

HEARTY SOUP CO.

Cost of Production Report - Filling Department

For the Month Ended May 31, 2014

UNITS

Equivalent Units (a)

Whole Units

Direct Materials

Conversion

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 cost:

Inventory in process, May 1 (

complete )

Started and completed in May

Transferred to finished goods in May

Inventory in process, May 31 (

complete )

Total units to be assigned cost

COSTS

Costs

Direct Materials

Conversion

Total

Costs per equivalent unit:

Total costs for May in Filling Department

Total equivalent units

Cost per equivalent unit (b)

Costs assigned to production:

Inventory in process, May 1

Costs incurred in May

Total costs accounted for by the Filling Department

Costs allocated to completed and partially completed units:

Inventory in process, May 1 (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