Pittsburgh Aluminum Company uses a process cost system to record the costs of manufacturing rolled aluminum, which consists of the smelting and rolling processes. Materials are entered from smelting at the beginning of the rolling process. The inventory of Work in Process-Rolling on September 1, 2016, and debits to the account during September were as follows:

Bal., 2,600 units, completed:
Direct materials (2,600 $15.50)	$40,300
Conversion (2,600 $8.50)	5,525
	$45,825
From Smelting Department, 28,900 units	$462,400
Direct labor	158,920
Factory overhead	101,402

During September, 2,600 units in process on September 1 were completed, and of the 28,900 units entering the department, all were completed except 2,900 units that were completed.

Charges to Work in Process-Rolling for October were as follows:

From Smelting Department, 31,000 units	$511,500
Direct labor	162,850
Factory overhead	104,494

During October, the units in process at the beginning of the month were completed, and of the 31,000 units entering the department, all were completed except 2,000 units that were completed.

Required:

1.

(a)

Enter the balance as of September 1, 2016, in a four-column account for Work in Process-Rolling. Record the debits and the credits in the account for September.

(b)

Construct a cost of production report, and present computations for determining

i.	equivalent units of production for materials and conversion.
ii.	costs per equivalent unit.*
iii.	cost of goods finished, differentiating between units started in the prior period and units started and finished in September.*
iv.	work in process inventory.*
*	If an amount is zero, enter 0". Round your cost per unit answers to the nearest cent.

2.

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

3.

Comment on the change in costs per equivalent unit for August through October for direct materials and conversion costs.

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

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

1(b).

Construct a cost of production report, and present computations for determining

i.	equivalent units of production for materials and conversion.
ii.	costs per equivalent unit.*
iii.	cost of goods finished, differentiating between units started in the prior period and units started and finished in September.*
iv.	work in process inventory.*
*	If an amount is zero, enter "0". Round your cost per unit answers to the nearest cent.

PITTSBURGH ALUMINUM COMPANY

Cost of Production Report-Rolling Department

For the Month Ended September 30, 2016

UNITS

Whole Units

Equivalent Units

Direct Materials

Conversion

Units charged to production:

Inventory in process, September 1

Received from Smelting Department

Total units accounted for by the Rolling Department

Units to be assigned costs:

Inventory in process, September 1 ( completed)

Started and completed in September

Transferred to finished goods in September

Inventory in process, September 30 ( completed)

Total units to be assigned costs

COSTS

Costs

Direct Materials

Conversion

Total

Costs per equivalent unit:

Total costs for September in Rolling Department

Total equivalent units

Costs per equivalent unit

Costs assigned to production:

Inventory in process, September 1

Costs incurred in September

Total costs accounted for by the Rolling Department

Cost allocated to completed and

partially completed units:

Inventory in process, September 1 balance

To complete inventory in process, September 1

Cost of completed September 1 work in process

Started and completed in September

Transferred to finished goods in September

Inventory in process, September 30

Total costs assigned by the Rolling Department

2(b).

Construct a cost of production report, and present computations for determining

i.	equivalent units of production for materials and conversion.
ii.	costs per equivalent unit.*
iii.	cost of goods finished, differentiating between units started in the prior period and units started and finished in September.*
iv.	work in process inventory.*
*	If an amount is zero, enter "0". Round your cost per unit answers to the nearest cent.

PITTSBURGH ALUMINUM COMPANY

Cost of Production Report-Rolling Department

For the Month Ended October 31, 2016

UNITS

Whole Units

Equivalent Units

Direct Materials

Conversion

Units charged to production:

Inventory in process, October 1

Received from Smelting Department

Total units accounted for by the Rolling Department

Units to be assigned costs:

Inventory in process, October 1 ( completed)

Started and completed in October

Transferred to finished goods in October

Inventory in process, October 31 ( completed)

Total units to be assigned costs

COSTS

Costs

Direct Materials

Conversion

Total

Costs per equivalent unit:

Total costs for October in Rolling Department

Total equivalent units

Cost per equivalent unit

Costs assigned to production:

Inventory in process, October 1

Costs incurred in October

Total costs accounted for by the Rolling Department

Cost allocated to completed and

partially completed units:

Inventory in process, October 1 balance

To complete inventory in process, October 1

Cost of completed October 1 work in process

Started and completed in October

Transferred to finished goods in October

Inventory in process, October 31

Total costs assigned by the Rolling Department

3. The cost per equivalent unit for direct materials ____________ from August to October. The cost per equivalent unit for conversion costs _________________ from August to October. These changes _____________ be investigated for their underlying causes, and any necessary corrective actions should be taken.