PR 20-3A, PR 20-4A

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

Bal., 1,000 units, 80% completed:
	Direct materials (1,000 x $7.00)	$ 7,000
	Conversion (1,000 x 80% x $2.90)	2,320
		$ 9,320
From Cooking Department, 22,700 units		$161,170
Direct labor		42,471
Factory overhead		22,869

During April, 1,000 units in process on April 1 were completed, and of the 22,700 units entering the department, all were completed except 1,600 units that were 30% completed. Charges to Work in ProcessFilling for May were as follows:

From Cooking Department, 26,100 units	$190,530
Direct labor	53,280
Factory overhead	28,684

During May, the units in process at the beginning of the month were completed, and of the 26,100 units entering the department, all were completed except 1,300 units that were 40% completed.

Required:

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. If an amount box does not require an entry, leave it blank.

does not require an entry, leave it blank. If an amount box does not require an entry, leave it blank. Round cost per unit answers to the nearest cent. es not require an entry, leave it blank. If an amount box does not require an entry, leave it blank. Round cost per unit answers to the nearest cent. - The cost per equivalent unit for direct materials from March to May. The cost per equivalent unit for conversion costs from March to May. These changes be investigated for heir underlying causes, and any necessary corrective actions should be taken