Work in Process Account Data for Two Months; Cost of Production Reports

Pittsburgh Aluminum Company uses process costing 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., $1,000$ units, $30\%$ completed:

Direct materials $(1,000\backslash$times $$7\mathrm{.}90)$ $$7,900$

Conversion $(1,000\backslash$times $30\%\backslash$times $$3\mathrm{.}30)990$

Total $$8,890$

From Smelting Department, $23,600$ units $$188,800$

Direct labor $51,716$

Factory overhead $27,847$

During September, $1,000$ units in process on September $1$ were completed, and of the $23,600$ units entering the department, all were completed except $1,900$ units that were $90\%$ completed. Charges to Work in Process$$Rolling for October were as follows:

From Smelting Department, $27,100$ units $$222,220$

Direct labor $60,900$

Factory overhead $32,795$

During October, the units in process at the beginning of the month were completed, and of the $27,100$ units entering the department, all were completed except $1,300$ units that were $60\%$ completed.

$1.$ 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.

Work in Process$-$Rolling Department

September $1$ Bal., $1,000$ units, $30\%$ completed DEBIT CREDIT BALANCE

DEBIT BALANCE CREDIT

September $30$ Smelting Dept., $23,600$ units at $$8/$unit DEBIT CREDIT BALANCE

DEBIT BALANCE CREDIT

September $30$ Direct labor DEBIT CREDIT BALANCE

DEBIT BALANCE CREDIT

September $30$ Factory overhead DEBIT CREDIT BALANCE

DEBIT BALANCE CREDIT

September $30$ Finished goods DEBIT CREDIT BALANCE

DEBIT BALANCE CREDIT

September $30$ Bal., $1,900$ units, $90\%$ completed DEBIT CREDIT BALANCE

DEBIT BALANCE CREDIT

Pittsburgh Aluminum Company Cost of Production Report$-$Rolling Department For the Month Ended September $30$

Units charged to production:

Inventory in process, September $1$ Whole Units

Received from Smelting Department Whole Units

Total units accounted for by the Rolling Department Whole Units

Units to be assigned costs:

Inventory in process, September $1$ Whole Units Equivalent Units

Direct Materials $($a$)$ Equivalent Units Conversion $($a$)$

Started and completed in September Whole Units Equivalent Units

Direct Materials $($a$)$ Equivalent Units Conversion $($a$)$

Transferred to finished goods in September Whole Units Equivalent Units

Direct Materials $($a$)$ Equivalent Units Conversion $($a$)$

Inventory in process, September $30$ Whole Units Equivalent Units

Direct Materials $($a$)$ Equivalent Units Conversion $($a$)$

Total units to be assigned costs Whole Units Equivalent Units

Direct Materials $($a$)$ Equivalent Units Conversion $($a$)$

Costs

Cost per equivalent unit:

Total costs for September in Rolling Department $direct materials $conversion

Total equivalent units $direct materials $conversion

Cost per equivalent unit $($b$)$ $direct materials $conversion

Costs assigned to production

Inventory in process, September $1$ $total

Costs incurred in September $total

Total costs accounted for by the Rolling Department $total

Costs allocated to completed and partially completed units:

Inventory in process, September $1$ balance $($c$)$ $total

To complete inventory in process, September $1($c$)$ $direct materials $conversion $total

Cost of completed September $1$ work in process $total

Started and completed in September $($c$)$ $direct materials $conversion $total

Transferred to finished goods in September $($c$)$ $total

Inventory in process, September $30($d$)$ $total