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

Hearty Soup Co. uses a process cost system to record the costs of processing soup, which requires the cooking and filling processes. Materials are entered from the cooking process at the beginning of the filling process. The inventory of Work in ProcessFilling on April 1 and debits to the account during April were as follows:

Bal., 1,200 units, 40% completed:
	Direct materials (1,200 x $5.00)	$ 6,000
	Conversion (1,200 x 40% x $2.10)	1,008
	$ 7,008
From Cooking Department, 28,080 units	$143,208
Direct labor	40,026
Factory overhead	21,552

During April, 1,200 units in process on April 1 were completed, and of the 28,080 units entering the department, all were completed except 2,700 units that were 70% completed. Charges to Work in ProcessFilling for May were as follows:

From Cooking Department, 32,300 units	$171,190
Direct labor	49,260
Factory overhead	26,525

During May, the units in process at the beginning of the month were completed, and of the 32,300 units entering the department, all were completed except 1,600 units that were 90% completed.

Required:

1. Enter the balance as of April 1 in a four-column account for Work in ProcessFilling. Record the debits and credits in the account for April. Construct a cost of production report and present computations for determining (a) equivalent units of production for materials and conversion; (b) cost per equivalent unit; (c) cost of goods finished, differentiating between units started in the prior period and units started and finished in April; and (d) work in process inventory. If an amount box does not require an entry, leave it blank.

ACCOUNT	Work in Process-Filling Department		ACCOUNT NO.
	BALANCE
DATE	ITEM	POST. REF.	DEBIT	CREDIT	DEBIT	CREDIT
Apr. 1	Bal., 1,200 units, 40% completed		fill in the blank 1	fill in the blank 2	fill in the blank 3	fill in the blank 4
30	Cooking Dept., 28,080 units at $5.10		fill in the blank 5	fill in the blank 6	fill in the blank 7	fill in the blank 8
30	Direct labor		fill in the blank 9	fill in the blank 10	fill in the blank 11	fill in the blank 12
30	Factory overhead		fill in the blank 13	fill in the blank 14	fill in the blank 15	fill in the blank 16
30	Finished goods		fill in the blank 17	fill in the blank 18	fill in the blank 19	fill in the blank 20
30	Bal., 2,700 units, 70% completed		fill in the blank 21	fill in the blank 22	fill in the blank 23	fill in the blank 24

If an amount box does not require an entry, leave it blank. Round cost per unit answers to the nearest cent.

Hearty Soup Co. Cost of Production Report-Filling Department For the Month Ended April 30
	Whole Units	Equivalent Units
Units		Direct Materials (a)	Conversion (a)
Units charged to production:
Inventory in process, April 1	fill in the blank 25
Received from Cooking Department	fill in the blank 26
Total units accounted for by the Filling Department	fill in the blank 27
Units to be assigned costs:
Inventory in process, April 1	fill in the blank 28	fill in the blank 29	fill in the blank 30
Started and completed in April	fill in the blank 31	fill in the blank 32	fill in the blank 33
Transferred to finished goods in April	fill in the blank 34	fill in the blank 35	fill in the blank 36
Inventory in process, April 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
Costs		Direct Materials		Conversion		Total
Costs per equivalent unit:
Total costs for April in Filling 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 charged to production:
Inventory in process, April 1										$fill in the blank 49
Costs incurred in April										fill in the blank 50
Total costs accounted for by the Filling Department										$fill in the blank 51
Cost allocated to completed and partially completed units:
Inventory in process, April 1 balance (c)										$fill in the blank 52
To complete inventory in process, April 1 (c)		$fill in the blank 53				$fill in the blank 54				fill in the blank 55
Cost of completed April 1 work in process										$fill in the blank 56
Started and completed in April (c)		fill in the blank 57				fill in the blank 58				fill in the blank 59
Transferred to finished goods in April (c)										$fill in the blank 60
Inventory in process, April 30 (d)		fill in the blank 61				fill in the blank 62				fill in the blank 63
Total costs assigned by the Filling Department										$fill in the blank 64

2. Provide the same information for May by recording the May transactions in the four-column work in process account. Construct a cost of production report and present the May computations (a through d) listed in part (1). If an amount box does not require an entry, leave it blank.

ACCOUNT	Work in Process-Filling Department		ACCOUNT NO.
	Balance
DATE	ITEM	POST. REF.	DEBIT	CREDIT	DEBIT	CREDIT
May 1	Balance		fill in the blank 65	fill in the blank 66	fill in the blank 67	fill in the blank 68
31	Cooking Dept., 32,300 units at $5.3		fill in the blank 69	fill in the blank 70	fill in the blank 71	fill in the blank 72
31	Direct labor		fill in the blank 73	fill in the blank 74	fill in the blank 75	fill in the blank 76
31	Factory overhead		fill in the blank 77	fill in the blank 78	fill in the blank 79	fill in the blank 80
31	Finished goods		fill in the blank 81	fill in the blank 82	fill in the blank 83	fill in the blank 84
31	Bal., 1,600 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 box does not require an entry, leave it blank. Round cost per unit answers to the nearest cent.

Hearty Soup Co. Cost of Production Report-Filling Department For the Month Ended May 31
	Whole Units	Equivalent Units
Units		Direct Materials (a)	Conversion (a)
Units charged to production:
Inventory in process, May 1	fill in the blank 89
Received from Cooking Department	fill in the blank 90
Total units accounted for by the Filling Department	fill in the blank 91
Units to be assigned costs:
Inventory in process, May 1	fill in the blank 92	fill in the blank 93	fill in the blank 94
Started and completed in May	fill in the blank 95	fill in the blank 96	fill in the blank 97
Transferred to finished goods in May	fill in the blank 98	fill in the blank 99	fill in the blank 100
Inventory in process, May 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 per equivalent unit:
Total costs for May in Filling 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, May 1										$fill in the blank 113
Costs incurred in May										fill in the blank 114
Total costs accounted for by the Filling Department										$fill in the blank 115
Cost allocated to completed and partially completed units:
Inventory in process, May 1 balance (c)										$fill in the blank 116
To complete inventory in process, May 1 (c)		$fill in the blank 117				$fill in the blank 118				fill in the blank 119
Cost of completed May 1 work in process										$fill in the blank 120
Started and completed in May (c)		fill in the blank 121				fill in the blank 122				fill in the blank 123
Transferred to finished goods in May (c)										$fill in the blank 124
Inventory in process, May 31 (d)		fill in the blank 125				fill in the blank 126				fill in the blank 127
Total costs assigned by the Filling Department										$fill in the blank 128

3. The cost per equivalent unit for direct materials

decreased or increased

from March to May. The cost per equivalent unit for conversion costs

decreased or increased

from March to May. These changes

need or not should

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