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

Bal., 1,000 units, 70% completed:
	Direct materials (1,000 x $7.20)	$ 7,200
	Conversion (1,000 x 70% x $3.00)	2,100
		$ 9,300
From Smelting Department, 21,800 units		$159,140
Direct labor		41,223
Factory overhead		22,197

During September, 1,000 units in process on September 1 were completed, and of the 21,800 units entering the department, all were completed except 1,600 units that were 40% completed. Charges to Work in ProcessRolling for October were as follows:

From Smelting Department, 25,100 units	$188,250
Direct labor	52,040
Factory overhead	28,024

During October, the units in process at the beginning of the month were completed, and of the 25,100 units entering the department, all were completed except 1,300 units that were 20% 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.

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., 1,000 units, 70% completed: Direct materials (1,000 x $7.20) ( $ 7,200 Conversion (1,000 x 70% x $3.00) 2,100 $ 9,300 $159,140 From Smelting Department, 21,800 units Direct labor 41,223 Factory overhead 22,197 During September, 1,000 units in process on September 1 were completed, and of the 21,800 units entering the department, all were completed except 1,600 units that were 40% completed. Charges to Work in Process-Rolling for October were as follows: From Smelting Department, 25,100 units $188,250 Direct labor 52,040 Factory overhead 28,024 During October, the units in process at the beginning of the month were completed, and of the 25,100 units entering the department, all were completed except 1,300 units that were 20% 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., 1,000 units, 70% completed 0 0 9,300 0 Sept. 30 Smelting Dept., 21,800 units at $7.3 159,140 0 o 168,440 209,663 Sept. 30 Direct labor 41,223 0 0 Sept. 30 Factory overhead 22,197 0 231,860 0 Sept. 30 Finished goods o 0 X 0 0 Sept. 30 Bal., 1,600 units, 40% completed 0 0 o 0