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, 60% completed: Direct materials (1,200 x $3.8) $ 4,560 $ Conversion (1,200 x 60% x $1.6) 1,152 $ 5,712 From Smelting Department, 26,400 units $102,960 Direct labor 26,697 Factory overhead 14,375 During September, 1,200 units in process on September 1 were completed, and of the 26,400 units entering the department, all were completed except 3,400 units that were 20% completed. Charges to Work in Process-Rolling for October were as follows: From Smelting Department, 30,400 units $ 124,640 Direct labor 36,780 Factory overhead 19,812 During October, the units in process at the beginning of the month were completed, and of the 30,400 units entering the department, all were completed except 1,600 units that were 80% completed. 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 DATE ITEM POST. REF. DEBIT CREDIT DEBIT CREDIT Sept. 1 Bal., 1,200 units, 60% completed 5,712 Sept. 30 Smelting Dept., 26,400 units at $3.9 102,960 108,672 Sept. 30 Direct labor 26,697 135,369 Sept. 30 Factory overhead 14,375 149,744 Sept. 30 Finished goods 135,328 14,416 Sept. 30 Bal., 3,400 units, 20% completed 14,416 Pittsburgh Aluminum Company Cost of Production Report-Rolling Department For the Month Ended September 30 Whole Units Equivalent Units Direct Units Conversion (a) Materials (a) Units charged to production: Inventory in process, September 1 1,200 Received from Smelting Department 26,400 Total units accounted for by the Rolling Department 27,600 Units to be assigned costs: Inventory in process, September 1 1,200 Started and completed in September 23,000 23,000 23,000 Transferred to finished goods in September 24,200 23,000 23,480 Inventory in process, September 30 3,400 3,400 680 Total units to be assigned costs 27,600 26,400 24,160 0 480 Costs Costs Direct Materials Conversion Total Costs Cost per equivalent unit: Total costs for September in Rolling Department $ 102,960 41,072 Total equivalent units 26,400 24,160 3.90 $ 1.70 Cost per equivalent unit (b) Costs assigned to production: Inventory in process, September 1 5,712 Costs incurred in September 144,032 $ 149,744 7 Total costs accounted for by the Rolling Department Costs allocated to completed and partially completed units: Inventory in process, September 1 balance (c) 5,712 o 816 816 $ 6,528 7 To complete inventory in process, September 1 (c) Cost of completed September 1 work in process Started and completed in September (c) c Transferred to finished goods in September (c) Inventory in process, September 30 (d) 89,700 39,100 128,800 135,3287 13,260 1,156 14,416 Total costs assigned by the Rolling Department $ 149,744 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 14,416 October 31 Smelting Dept., 30,400 units at $4.1 124,640 139,056 October 31 Direct labor 36,780 175,836 October 31 Factory overhead 19,812 195,648 October 31 Finished goods 186,880 x 186,880 X 8,768 x October 31 Bal., 1,600 units, 80% completed 8,768 X 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 Direct Units Materials (a) Conversion (a) Units charged to production: Inventory in process, October 1 3,400 Received from Smelting Department 30,400 Total units accounted for by the Rolling Department 33,800 Units to be assigned costs: Inventory in process, October 1 3,400 2,720 X Started and completed in October 28,800 28,800 28,800 Transferred to finished goods in October 32,200 28,800 31,520 x Inventory in process, October 31 1,600 1,600 1,280 0 Total units to be assigned costs 33,800 30,400 32,800 X 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, 60% completed: Direct materials (1,200 x $3.8) $ 4,560 $ Conversion (1,200 x 60% x $1.6) 1,152 $ 5,712 From Smelting Department, 26,400 units $102,960 Direct labor 26,697 Factory overhead 14,375 During September, 1,200 units in process on September 1 were completed, and of the 26,400 units entering the department, all were completed except 3,400 units that were 20% completed. Charges to Work in Process-Rolling for October were as follows: From Smelting Department, 30,400 units $ 124,640 Direct labor 36,780 Factory overhead 19,812 During October, the units in process at the beginning of the month were completed, and of the 30,400 units entering the department, all were completed except 1,600 units that were 80% completed. 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 DATE ITEM POST. REF. DEBIT CREDIT DEBIT CREDIT Sept. 1 Bal., 1,200 units, 60% completed 5,712 Sept. 30 Smelting Dept., 26,400 units at $3.9 102,960 108,672 Sept. 30 Direct labor 26,697 135,369 Sept. 30 Factory overhead 14,375 149,744 Sept. 30 Finished goods 135,328 14,416 Sept. 30 Bal., 3,400 units, 20% completed 14,416 Pittsburgh Aluminum Company Cost of Production Report-Rolling Department For the Month Ended September 30 Whole Units Equivalent Units Direct Units Conversion (a) Materials (a) Units charged to production: Inventory in process, September 1 1,200 Received from Smelting Department 26,400 Total units accounted for by the Rolling Department 27,600 Units to be assigned costs: Inventory in process, September 1 1,200 Started and completed in September 23,000 23,000 23,000 Transferred to finished goods in September 24,200 23,000 23,480 Inventory in process, September 30 3,400 3,400 680 Total units to be assigned costs 27,600 26,400 24,160 0 480 Costs Costs Direct Materials Conversion Total Costs Cost per equivalent unit: Total costs for September in Rolling Department $ 102,960 41,072 Total equivalent units 26,400 24,160 3.90 $ 1.70 Cost per equivalent unit (b) Costs assigned to production: Inventory in process, September 1 5,712 Costs incurred in September 144,032 $ 149,744 7 Total costs accounted for by the Rolling Department Costs allocated to completed and partially completed units: Inventory in process, September 1 balance (c) 5,712 o 816 816 $ 6,528 7 To complete inventory in process, September 1 (c) Cost of completed September 1 work in process Started and completed in September (c) c Transferred to finished goods in September (c) Inventory in process, September 30 (d) 89,700 39,100 128,800 135,3287 13,260 1,156 14,416 Total costs assigned by the Rolling Department $ 149,744 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 14,416 October 31 Smelting Dept., 30,400 units at $4.1 124,640 139,056 October 31 Direct labor 36,780 175,836 October 31 Factory overhead 19,812 195,648 October 31 Finished goods 186,880 x 186,880 X 8,768 x October 31 Bal., 1,600 units, 80% completed 8,768 X 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 Direct Units Materials (a) Conversion (a) Units charged to production: Inventory in process, October 1 3,400 Received from Smelting Department 30,400 Total units accounted for by the Rolling Department 33,800 Units to be assigned costs: Inventory in process, October 1 3,400 2,720 X Started and completed in October 28,800 28,800 28,800 Transferred to finished goods in October 32,200 28,800 31,520 x Inventory in process, October 31 1,600 1,600 1,280 0 Total units to be assigned costs 33,800 30,400 32,800 X