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

Line Item Description	Amount
Bal., 800 units, 20% completed:
Direct materials (800 $6.20)	$4,960
Conversion (800 20% $2.60)	416
Total	$5,376
From Smelting Department, 17,280 units	$108,864
Direct labor	28,933
Factory overhead	15,579

During September, 800 units in process on September 1 were completed, and of the 17,280 units entering the department, all were completed except 2,000 units that were 60% completed. Charges to Work in ProcessRolling for October were as follows:

Line Item Description	Amount
From Smelting Department, 19,900 units	$129,350
Direct labor	37,490
Factory overhead	20,190

During October, the units in process at the beginning of the month were completed, and of the 19,900 units entering the department, all were completed except 1,000 units that were 90% 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.

DATE	ITEM	POST. REF.	DEBIT	CREDIT	BALANCE DEBIT	BALANCE CREDIT
September 1	Bal., 800 units, 20% completed		fill in the blank 1	fill in the blank 2	fill in the blank 3	fill in the blank 4
September 30	Smelting Dept., 17,280 units at $6.3/unit		fill in the blank 5	fill in the blank 6	fill in the blank 7	fill in the blank 8
September 30	Direct labor		fill in the blank 9	fill in the blank 10	fill in the blank 11	fill in the blank 12
September 30	Factory overhead		fill in the blank 13	fill in the blank 14	fill in the blank 15	fill in the blank 16
September 30	Finished goods		fill in the blank 17	fill in the blank 18	fill in the blank 19	fill in the blank 20
September 30	Bal., 2,000 units, 60% 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.

Units	Whole Units	Equivalent Units Direct Materials (a)	Equivalent Units 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

Costs	Direct Materials	Conversion	Total
Cost per equivalent unit:
Total costs for September in Rolling Department	$fill in the blank 43	$fill in the blank 44
Total equivalent units	fill in the blank 45	fill in the blank 46
Cost per equivalent unit (b)	$fill in the blank 47	$fill in the blank 48
Costs assigned to production:
Inventory in process, September 1			$fill in the blank 49
Costs incurred in September			fill in the blank 50
Total costs accounted for by the Rolling Department			$fill in the blank 51
Costs allocated to completed and partially completed units:
Inventory in process, September 1 balance (c)			$fill in the blank 52
To complete inventory in process, September 1 (c)	$fill in the blank 53	$fill in the blank 54	fill in the blank 55
Cost of completed September 1 work in process			$fill in the blank 56
Started and completed in September (c)	fill in the blank 57	fill in the blank 58	fill in the blank 59
Transferred to finished goods in September (c)			$fill in the blank 60
Inventory in process, September 30 (d)	fill in the blank 61	fill in the blank 62	fill in the blank 63
Total costs assigned by the Rolling Department			$fill in the blank 64

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.

DATE	ITEM	POST. REF.	DEBIT	CREDIT	BALANCE DEBIT	BALANCE 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., 19,900 units at $6.5/unit		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, 90% 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.

Units	Whole Units	Equivalent Units Direct Materials (a)	Equivalent Units 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	Direct Materials	Conversion	Total
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 charged 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

3. The cost per equivalent unit for direct materials

decreasedincreased

from August to October. The cost per equivalent unit for conversion costs

decreasedincreased

from August to October. These changes

need notshould

be investigated for their underlying causes, and any necessary corrective actions should be taken.