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Work in Process Account Data for Two Months; Cost of production Reports Pittsburgh Aluminum Company uses a process costs to record the costs of manufacturing

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Work in Process Account Data for Two Months; Cost of production Reports Pittsburgh Aluminum Company uses a process costs to record the costs of manufacturing rolled aluminum, which consists of the smelting and rolling processes Materials are entered trommeling at the beginning of the rolling process. The inventory of work in Process Roting on September 1 and debts to the account during September were as follow Bal, 400 units, 0 completed Direct materials (400 54.6) 51,840 Conversion (400 * 30% X 51.9) 600 52.446 From Smelting Department. 9,040 units $42.400 Direct labor 13,219 Factory overhead 6,041 During September 400 units in procou en september 1 were comutes, and of the 1,040 units entering the departments were completed cost 700 units that were 30 coment. Charpes ta voor in Process --Rolling for October were as follows: From Simering Department, 10.400 V 550.000 Direct labor 13,980 Factory overhead 7.524 During October, the units in procent at the beginning of the month were completed, and of the 10.400 unti untering the department, al were completed except 300 units that were completi Required: 1. Enter the balance as of Septembers in a four-column account for Work in Process Rolling Record the debits and the credits in the account for September Construct a stof producten ont present computations for determining (a) equivalent units of production for materials and conversion, b) costa per equivalent unit() cost of goodsredager tarta in the prior period and units started and finished in September, and (d) work in process inventory If an amount bow does not an entry leave it 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, (1 cost of goods finished, differentiating between unit started in the prior period and units started and finished in September and (a) work in process inventory. If an amount box does not require an entry lewe it blank ACCOUNT Work in Process Rolling Department ACCOUNT NO. BALANCE DATE ITEM POST. REF DEBIT CREDIT DEBIT CREDIT 2,648 Sept. 1 Sept. 30 42,488 Bal, 400 units, on completed Timelting Dept. 9,040 urts at $4.7 Direct labor Factory overhead Finished goods 44,936 56,155 Sept. 30 11,219 Sept. 30 6,041 62,196 3,710 Sept. 30 58,486 Sept. 30 Bal. 700 units, 30% completed 3,710 If an amount is zero, enter in a zero "o". Round cost per unit answers to the nearest cent. Pittsburgh Aluminum Company Cost of Production Report-Rolling Department For the Month Ended September 30 Whole Units Equivalent Units Units Direct Materials (a) Conversion (a) Units charged to production: Inventory in process, September 1 400 IV Received from Smelting Department 9,040 Total units accounted for by the Rolling Department 9,440 400 0 80 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 8,340 8,340 8,340 8,740 8,340 8,420 700 700 210 9,440 Total units to be assigned costs 8,630 9,040 Costs Costs Direct Materials Conversion Total Costs Cost per equivalent unit: Total costs for September in Rolling Department 42,488 17,260 9,040 8,630 4.70 2.00 1,648 x I 59,748 Total equivalent units Cost per equivalent unit (b) Costs assigned to production: Inventory in proces, September 1 Costs incurred in September Total costs accounted for by the Rolling Department Costs allocated to completed and partially completed units! Inventory in proces, 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 (6) Inventory in process, September 30 (d) Total costs assigned by the Rolling Department 160 160 39,198 16,680 S5,878 3,290 420 3,710 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 ACCOUNT NO Balance DATE ITEM POST. REF DEBIT CREDIT DEBIT CREDIT October 1 Balance 3,7107 50,960 54,670 October 3: Smelting Dept., 10,400 units at 54.9 October 31 Direct labor 13,980 68,650 7,524 October 31 Factory overhead October 31 Finished goods October 31 Bal 500 units, 40% completed 76,174 2,862 X 73,312 X 2,862 If an amount is zero, enter in a zero "O". Round cost per unit answers to the nearest cent. Pittsburgh Aluminum Company Cost of Production Report-Rolling Department For the Month Ended October 31 Whole Units Equivalent Units Conversion Units Direct Materials (a) 700 10,400 11,100 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 Started and completed in October Transferred to finished goods in October Inventory in process, October 31 Total units to be assigned costs 700 9,900 9,900 9,900 10,600 9,900 500 500 200 11,100 10,400 Costs Casts Direct Materials Conversion Total Costs Cost per equivalent unit Total costs for October in Rolling Department 50,960 21,504 Total equivalent units 10,400 10,590 x 5 4.90 V 1 2.03 X Cost per equivalent unit (b) Costs assigned to production: Inventory in process, October 1 1 3,710 Containcurred in October 72,464 76,174 Total cost accounted for by the Rolling Department Costs allocated to completed and partially completed units: Inventory in process, October 1 balanca (c) To complete inventory in process, October 1 (c) 3,710 995 x 995 4,705 Cost of completed October 1 work in process Started and completed in October (4) Transferred to finished goods in October (c) 48,510 20,097 X 68,607 X 73,312 x Inventory in process, October 31 (d) 2,450 406x 2,856 X Total costs assigned by the Rolling Department 76,168 3. The cost per equivalent unit for direct materials increased from August to October. The cost per equivalent unt for conversion costs increased from August to October. These changes should be investigated for their underlying causes, and any necessary corrective action should be

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