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, 70% completed:
	Direct materials (1,200 x $4.80)	$ 5,760
	Conversion (1,200 x 70% x $2.00)	1,680
		$ 7,440
From Cooking Department, 25,920 units		$127,008
Direct labor		33,333
Factory overhead		17,949

During April, 1,200 units in process on April 1 were completed, and of the 25,920 units entering the department, all were completed except 3,100 units that were 40% completed. Charges to Work in ProcessFilling for May were as follows:

From Cooking Department, 29,800 units	$151,980
Direct labor	43,440
Factory overhead	23,396

During May, the units in process at the beginning of the month were completed, and of the 29,800 units entering the department, all were completed except 1,600 units that were 20% 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.

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.

3. The cost per equivalent unit for direct materials from March to May. The cost per equivalent unit for conversion costs from March to May. These changes be investigated for their underlying causes, and any necessary corrective actions should be taken