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., 1,200 units, 20% completed:
	Direct materials (1,200 x $ 3.1)	$ 3,720
	Conversion (1,200 x 20% x $1.3)	312
		$ 4,032
From Smelting Department, 27,360 units		$87,552
Direct labor		25,007
Factory overhead		13,465

During September, 1,200 units in process on September 1 were completed, and of the 27,360 units entering the department, all were completed except 2,100 units that were 60% completed. Charges to Work in ProcessRolling for October were as follows:

From Smelting Department, 31,500 units	$107,100
Direct labor	31,380
Factory overhead	16,890

During October, the units in process at the beginning of the month were completed, and of the 31,500 units entering the department, all were completed except 1,600 units that were 90% 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.

Sept. 1	Bal., 1,200 units, 20% completed
Sept. 30	Smelting Dept., 27,360 units at $3.2
Sept. 30	Direct labor
Sept. 30	Factory overhead
Sept. 30	Finished goods
Sept. 30	Bal., 2,100 units, 60% completed

Pittsburgh Aluminum Company Cost of Production Report-Rolling Department For the Month Ended September 30
	Whole Units	Equivalent Units
Units		Direct Materials (a)	Conversion (a)
Units charged to production:
Inventory in process, September 1
Received from Smelting Department
Total units accounted for by the Rolling Department
Units to be assigned costs:
Inventory in process, September 1
Started and completed in September
Transferred to finished goods in September
Inventory in process, September 30
Total units to be assigned costs

Costs
Costs		Direct Materials				Conversion				Total Costs
Cost per equivalent unit:
Total costs for September in Rolling Department		$				$
Total equivalent units
Cost per equivalent unit (b)		$				$
Costs assigned to production:
Inventory in process, September 1										$
Costs incurred in September
Total costs accounted for by the Rolling Department										$
Costs allocated to completed and partially completed units:
Inventory in process, September 1 balance (c)										$
To complete inventory in process, September 1 (c)		$				$
Cost of completed September 1 work in process										$
Started and completed in September (c)		$
Transferred to finished goods in September (c)										$
Inventory in process, September 30 (d)
Total costs assigned by the Rolling Department										$

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
October 31	Smelting Dept., 31,500 units at $3.4
October 31	Direct labor
October 31	Factory overhead
October 31	Finished goods
October 31	Bal., 1,600 units, 90% completed

Pittsburgh Aluminum Company Cost of Production Report-Rolling Department For the Month Ended October 31
	Whole Units	Equivalent Units
Units		Direct Materials (a)	Conversion (a)
Units charged to production:
Inventory in process, October 1
Received from Smelting Department
Total units accounted for by the Rolling Department
Units to be assigned costs:
Inventory in process, October 1
Started and completed in October
Transferred to finished goods in October
Inventory in process, October 31
Total units to be assigned costs