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:

During April, 600 units in process on April 1 were completed, and of the 13,560 units entering the department, all were completed except 1,200 units that were 40% completed. Charges to Work in ProcessFilling for May were as follows:

From Cooking Department, 15,600 units	$98,280
Direct labor	27,520
Factory overhead	14,816

During May, the units in process at the beginning of the month were completed, and of the 15,600 units entering the department, all were completed except 800 units that were 20% 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.

If an amount box does not require an entry, leave it blank. Round cost per unit answers to the nearest cent.

2. Provide the same information for May by recording the May transactions in the four-column work in process account. Construct a cost of production report and present the May computations (a through d) listed in part (1). If an amount box does not require an entry, leave it blank.

Bal., 600 units, 70% completed: Direct materials (600 x $6.00) Conversion (600 x 70% x $2.50) $ 3,600 1,050 $ 4,650 $82,716 From Cooking Department, 13,560 units Direct labor 22,004 Factory overhead 11,848 ACCOUNT Work in Process-Filling Department ACCOUNT NO. BALANCE DATE ITEM POST. REF. DEBIT CREDIT DEBIT CREDIT Apr. 1 Bal., 600 units, 70% completed 4,650 30 Cooking Dept., 13,560 units at $6.10 82,716 87,366 30 Direct labor 22,004 109,370 30 Factory overhead 11,848 121,218 30 Finished goods 30 Bal., 1,200 units, 40% completed Hearty Soup Co. Cost of Production Report-Filling Department For the Month Ended April 30 Whole Units Equivalent Units Units Direct Materials (a) Conversion (a) 600 Units charged to production: Inventory in process, April 1 Received from Cooking Department Total units accounted for by the Filling Department Units to be assigned costs: Inventory in process, April 1 Started and completed in April Transferred to finished goods in April Inventory in process, April 30 Total units to be assigned costs Costs Costs Direct Materials Conversion Total Costs per equivalent unit: Total costs for April in Filling Department Total equivalent units Cost per equivalent unit (b) Costs charged to production: Inventory in process, April 1 Costs incurred in April Total costs accounted for by the Filling Department Cost allocated to completed and partially completed units: Inventory in process, April 1 balance (c) To complete inventory in process, April 1 (c) Cost of completed April 1 work in process Started and completed in April (c) Transferred to finished goods in April (C) Inventory in process, April 30 (d) Total costs assigned by the Filling Department ACCOUNT Work in Process-Filling Department ACCOUNT NO. Balance DATE ITEM POST. REF. DEBIT CREDIT DEBIT CREDIT May 1 Balance 31 Cooking Dept., 15,600 units at $6.3 31 Direct labor 31 Factory overhead 31 Finished goods 31 Bal., 800 units, 20% completed Hearty Soup Co. Cost of Production Report-Filling Department For the Month Ended May 31 Whole Units Equivalent Units Units Direct Materials (a) Conversion (a) Units charged to production: Inventory in process, May 1 Received from Cooking Department Total units accounted for by the Filling Department Units to be assigned costs: Inventory in process, May 1 Started and completed in May Transferred to finished goods in May Inventory in process, May 31 Total units to be assigned costs Costs Costs Direct Materials Conversion Total Costs per equivalent unit: Total costs for May in Filling Department Total equivalent units Cost per equivalent unit (b) Costs charged to production: Inventory in process, May 1 $ $ Costs incurred in May Total costs accounted for by the Filling Department Cost allocated to completed and partially completed units: Inventory in process, May 1 balance (c) To complete inventory in process, May 1 (c) Cost of completed May 1 work in process Started and completed in May (c) Transferred to finished goods in May (c) Inventory in process, May 31 (d) $ Total costs assigned by the Filling Department $