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 ProcessRolling on September 1 and debits to the account during September were as follows:

Bal., 800 units, 80% completed:
	Direct materials (800 x $7.4)	$ 5,920
	Conversion (800 x 80% x $3.1)	1,984
		$ 7,904
From Smelting Department, 19,200 units		$144,000
Direct labor		37,357
Factory overhead		20,115

During September, 800 units in process on September 1 were completed, and of the 19,200 units entering the department, all were completed except 2,000 units that were 30% completed. Charges to Work in ProcessRolling for October were as follows:

From Smelting Department, 22,100 units	$170,170
Direct labor	46,980
Factory overhead	25,290

During October, the units in process at the beginning of the month were completed, and of the 22,100 units entering the department, all were completed except 1,000 units that were 40% completed.

Required:

1. Enter the balance as of September 1 in a four-column account for Work in ProcessRolling. 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.

ACCOUNT	Work in Process-Rolling Department				ACCOUNT NO.
					BALANCE
DATE	ITEM	POST. REF.	DEBIT	CREDIT	DEBIT	CREDIT
Sept. 1	Bal., 800 units, 80% completed		fill in the blank 1	fill in the blank 2	fill in the blank 3	fill in the blank 4
Sept. 30	Smelting Dept., 19,200 units at $7.5		fill in the blank 5	fill in the blank 6	fill in the blank 7	fill in the blank 8
Sept. 30	Direct labor		fill in the blank 9	fill in the blank 10	fill in the blank 11	fill in the blank 12
Sept. 30	Factory overhead		fill in the blank 13	fill in the blank 14	fill in the blank 15	fill in the blank 16
Sept. 30	Finished goods		fill in the blank 17	fill in the blank 18	fill in the blank 19	fill in the blank 20
Sept. 30	Bal., 2,000 units, 30% completed		fill in the blank 21	fill in the blank 22	fill in the blank 23	fill in the blank 24

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
	Whole Units	Equivalent Units
Units		Direct Materials (a)	Conversion (a)
Units charged to production:
Inventory in process, September 1	fill in the blank 25
Received from Smelting Department	fill in the blank 26
Total units accounted for by the Rolling Department	fill in the blank 27
Units to be assigned costs:
Inventory in process, September 1	fill in the blank 28	fill in the blank 29	fill in the blank 30
Started and completed in September	fill in the blank 31	fill in the blank 32	fill in the blank 33
Transferred to finished goods in September	fill in the blank 34	fill in the blank 35	fill in the blank 36
Inventory in process, September 30	fill in the blank 37	fill in the blank 38	fill in the blank 39
Total units to be assigned costs	fill in the blank 40	fill in the blank 41	fill in the blank 42

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		fill in the blank 65	fill in the blank 66	fill in the blank 67	fill in the blank 68
October 31	Smelting Dept., 22,100 units at $7.7		fill in the blank 69	fill in the blank 70	fill in the blank 71	fill in the blank 72
October 31	Direct labor		fill in the blank 73	fill in the blank 74	fill in the blank 75	fill in the blank 76
October 31	Factory overhead		fill in the blank 77	fill in the blank 78	fill in the blank 79	fill in the blank 80
October 31	Finished goods		fill in the blank 81	fill in the blank 82	fill in the blank 83	fill in the blank 84
October 31	Bal., 1,000 units, 40% completed		fill in the blank 85	fill in the blank 86	fill in the blank 87	fill in the blank 88

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 October 31
	Whole Units	Equivalent Units
Units		Direct Materials (a)	Conversion (a)
Units charged to production:
Inventory in process, October 1	fill in the blank 89
Received from Smelting Department	fill in the blank 90
Total units accounted for by the Rolling Department	fill in the blank 91
Units to be assigned costs:
Inventory in process, October 1	fill in the blank 92	fill in the blank 93	fill in the blank 94
Started and completed in October	fill in the blank 95	fill in the blank 96	fill in the blank 97
Transferred to finished goods in October	fill in the blank 98	fill in the blank 99	fill in the blank 100
Inventory in process, October 31	fill in the blank 101	fill in the blank 102	fill in the blank 103
Total units to be assigned costs	fill in the blank 104	fill in the blank 105	fill in the blank 106

	Costs
Costs		Direct Materials				Conversion				Total Costs
Cost per equivalent unit:
Total costs for October in Rolling Department		$fill in the blank 107				$fill in the blank 108
Total equivalent units		fill in the blank 109				fill in the blank 110
Cost per equivalent unit (b)		$fill in the blank 111				$fill in the blank 112
Costs assigned to production:
Inventory in process, October 1										$fill in the blank 113
Costs incurred in October										fill in the blank 114
Total costs accounted for by the Rolling Department										$fill in the blank 115
Costs allocated to completed and partially completed units:
Inventory in process, October 1 balance (c)										$fill in the blank 116
To complete inventory in process, October 1 (c)		$fill in the blank 117				$fill in the blank 118				fill in the blank 119
Cost of completed October 1 work in process										$fill in the blank 120
Started and completed in October (c)		fill in the blank 121				fill in the blank 122				fill in the blank 123
Transferred to finished goods in October (c)										$fill in the blank 124
Inventory in process, October 31 (d)		fill in the blank 125				fill in the blank 126				fill in the blank 127
Total costs assigned by the Rolling Department										$fill in the blank 128

Costs Costs Direct Materials Conversion Total Costs Cost per equivalent unit: Total costs for September in Rolling Department 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 Rolling Department Costs allocated to completed and partially completed units: Inventory in process, September 1 balance (c) $ To complete inventory in process, September 1 (0) 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 (d) Total costs assigned by the Rolling Department