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., 1,000 units, 20% completed:
	Direct materials (1,000 x $4.30)	$ 4,300
	Conversion (1,000 x 20% x $1.80)	360
		$ 4,660
From Cooking Department, 23,800 units		$104,720
Direct labor		29,195
Factory overhead		15,721

During April, 1,000 units in process on April 1 were completed, and of the 23,800 units entering the department, all were completed except 2,400 units that were 60% completed. Charges to Work in ProcessFilling for May were as follows:

From Cooking Department, 27,400 units	$126,040
Direct labor	36,700
Factory overhead	19,760

During May, the units in process at the beginning of the month were completed, and of the 27,400 units entering the department, all were completed except 1,300 units that were 90% completed.

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., 27,400 units at $4.6		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., 1,300 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

decreasedincreasedincreased

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

decreasedincreasedincreased

from March to May. These changes

need notshouldshould

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