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, 30% completed: Direct materials (1,200 x $7.20) Conversion (1,200 x 30% x $3.00) $ 8,640 1,080 $9,720 From Smelting Department, 28,200 units $205,860 Direct labor Factory overhead 56,199 30,261 During September, 1,200 units in process on September 1 were completed, and of the 28,200 units entering the department, all were completed except 2,200 units that were 90% completed. Charges to Work in Process-Rolling for October were as follows: From Smelting Department, 32,400 units Direct labor Factory overhead $243,000 66,520 35,816 During October, the units in process at the beginning of the month were completed, and of the 32,400 units entering the department, all were completed except 1,600 units that were 60% completed. Required: 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. ACCOUNT Work in Process-Rolling Department ACCOUNT NO. BALANCE POST. REF. DEBIT CREDIT DEBIT CREDIT 0 0 205,860 0 0 DATE ITEM Sept. 1 Bal., 1,200 units, 30% completed Sept. 30 Smelting Dept., 28,200 units at $7.3 Sept. 30 Direct labor Sept. 30 Factory overhead Sept. 30 Finished goods Sept. 30 Bal., 2,200 units, 90% completed 0 0 0 0 0 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 Whole Units Equivalent Units Direct Materials (a) Conversion (a) 1,200 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 (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 (d) Direct Materials Costs Conversion Total Costs Total costs assigned by the Rolling Department 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 October 31 Smelting Dept., 32,400 units at $7.5 October 31 Direct labor October 31 Factory overhead October 31 Finished goods October 31 Bal., 1,600 units, 60% completed 0 0 0 0 0 0 0 0 0 0 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 Units 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 Whole Units Equivalent Units Direct Materials (a) Conversion (a) Costs Cost per equivalent unit: Total costs for October in Rolling Department Total equivalent units Cost per equivalent unit (b) Costs assigned to production: Inventory 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 (c) To complete inventory in process, October 1 (c) Cost of completed October 1 work in process Started and completed in October (c) Transferred to finished goods in October (c) Inventory in process, October 31 (d) Total costs assigned by the Rolling Department Direct Materials Costs Conversion Total Costs 3. The cost per equivalent unit for direct materials increased from August to October. These changes should from August to October. The cost per equivalent unit for conversion costs increased be investigated for their underlying causes, and any necessary corrective actions should be taken. Feedback Check My Work 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