orts 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 April 1 and debits to the account during April were as follows:

Work in ProcessSifting Department (900 units, 35 completed): Direct materials (900 $2.05) $1,845 Conversion (900 35 $0.40) 216

$2,061

The following costs were charged to Work in ProcessSifting Department during July:

Direct materials transferred from Milling Department: 15,700 units at $2.15 a unit

Direct labor Factory overhead

$33,755 4,420 2,708

Bal., 800 units, 30% completed: Direct materials (800 $4.30) Conversion (800 30% $1.75)

From Cooking Department, 7,800 units Direct labor Factory overhead

$ 3,440 420

$ 3,860

$34,320 8,562 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 Direct labor Factory overhead

$44,160 12,042 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.

Instructions

1. Enter the balance as of April 1 in a four-column account for Work in ProcessFilling. 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.