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Work in Process Account Data for Two Months; Cost of Production Reports 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 and debits to the account during September were as follows: Bal, 1,200 units, 70% completed: Direct materials (1,200 x 14.10) Conversion (1,200 x 70% x $1.70) From Smelting Department, 28,800 units Direct labor Factory overhead During September, 1,200 units in process on September 1 were completed, and of the 28,800 units entering the department, all were completed except 3,000 units that were 40% completed. Charges to Work in Process-Rolling for October were as follows: From Smelting Department, 33,100 units Direct labor Factory overhead During October, the units in process at the beginning of the month were completed, and of the 33,100 units entering the department, all were completed except 1,600 units that were 20% completed. $ 4,920 1,428 $6,348 $120,960 30,233 16,279 Required: 1. Enter the balance as of September 1 in a four-column account for Work in Process- Rolling. Record the debits and the credits in the account for September. 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 September, and (d) work in process inventory. If an amount box does not require an entry, leave it blank. DATE ACCOUNT Work in Process-Rolling Department Sept. 1 Sept. 30 Sept. 30 Sept. 30 Sept. 30 Sept. 30 $145,640 41,520 22,358 ITEM Bal, 1,200 units, 70% completed Smelting Dept, 28,800 units at $4.2 Direct labor Factory overhead Finished goods Bal, 3,000 units, 40% completed POST. REF. DEBIT 120,960 30,233 16,279 CREDIT ACCOUNT NO. BALANCE DEBIT 6,348 127,308 157,541 173,820 6,348 X 6,348 X CREDIT If an amount is zero, enter in a zero "0". Round cost per unit answers to the nearest cent. Pittsburgh Aluminum Company Cost of Production Report-Rolling Department For the Month Ended September 30 Units 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 Started and completed in September Transferred to finished goods in September Inventory in process, September 30 Total units to be assigned costs Costs Cost per equivalent unit: Total costs for September in Roling Department Whole Units 1,200 Total equivalent units Cost per equivalent unit (b) Costs assigned to production: Inventory in process, September 1 Costs incurred in September Total costs accounted for by the Roling Department Costs allocated to completed and partially completed units: Inventory in process, September 1 balance (c) To complete inventory in process, September 1 (c) Cost of completed September 1 work in process Started and completed in September (c) Transferred to finished goods in September (c) Inventory in process, September 30 (6) Total costs assigned by the Rolling Department 28,800 30,000 1,200 25,800 27,000 3,000 30,000 Equivalent Units Direct Materials (a) 25,800 25,800 3,000 28,800 Direct Materials 120,960 28,800 Conversion (a) 360 25,800 26,160 1,200 27,360 Costs Conversion 13,954 Total Co 2. Provide the same information for October by recording the October transactions in the four-column work in process account. Construct a cost of production report, and present the October computations (a through d) listed in part (1). If an amount box does not require an entry, leave it blank. ACCOUNT Work in Process-Rolling Department ITEM DATE October 1 Balance October 31 Smelting Dept, 33,100 units at $4.4 October 31 Direct labor October 31 Factory overhead October 31 Finished goods October 31 Bal, 1.600 units, 20% completed Units Units charged to production: Inventory in process, October 1 Received from Smelting Department Pittsburgh Aluminum Company Cost of Production Report-Rolling Department For the Month Ended October 31 Whole Units Total units accounted for by the Rolling Department Units to be assigned costs Inventory in process, October 1 Started and completed in Octubr Transferred to finished goods in October Inventory in process, October 31 Total units to be assigned costs POST. REF. Costs Cost per equivalent unit: Total costs for October in Rolling Department Total equivalent units If an amount is zero, enter in a zero "0". Round cost per unit answers to the nearest cent. Cost per equivalent unit (b) Costs assigned to production DEBIT Inventory in process, October 1 Costs incurred in October Total costs accounted for by the Rating Department Costs allocated to completed and partially completed unit Inventory in process, October 1 balance ( 6,348 X 145,440 41,520 22,358 6,348 CREDIT 6,348 X Equivalent Units Direct Conversion Materials (a) Direct Materials ACCOUNT NO. DEBIT 4,348 X CREDIT Costs Conversion Tatal Cont Units Units charged to production: Inventory in process, October 1 Received from Smelting Department Total units accounted for by the Rolling Department unts to be assigned costs Inventory in process, October Started and completed in October Transferred to finished goods in October Diventory in process, October 31 Costs Cost per equivalent unit: Total costs for October in Rolling Department Total equivalent units Cost per equivalent unit (b) Costs assigned to production: Driventory in process, October 1 Costs incurred in October Total costs accounted for by the Rolling Department Costs allocated to completed and partially completed units Inventory in process, October 1 balance() To complete inventory in process, October 1 (C) Cost of completed October 1 work in process Started and completed in October ( Transferred to finished goods in October ( Inventory in process, October 31 (4) Total costs assigned by the Ring Department 6,348 Direct Conversion (a) Materials (a) H Direct Materials Costs Conversion Total Costs from August to October. 3. The cost per equivalent unit for direct materials increased The cost per equivalent unit for conversion costs incessed from August to October. These changes should be investigated for their underlying causes, and any necessary corrective actions should be taken. CheckMy Costs accumulate in each department before being transferred to finished goods. There are three types of inventory; materials, work in process, and finished goods. Calculate equivalent units for materials and conversion costs. Calculate the cost per equivalent unit for materials and conversion costs. Calculate the costs assigned to the beginning inventory, the units started and completed, and the ending inventory. Compare the costs per equivalent unit for January through October. The costs per equivalent units for materials and conversion for January are in the September 1 work in process inventory