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, 20% completed: | |
| | Direct materials (1,000 x $5.5) | $ 5,500 |
| | Conversion (1,000 x 20% x $2.3) | 460 |
| | $ 5,960 |
| From Smelting Department, 22,800 units | $127,680 |
| Direct labor | 35,568 |
| Factory overhead | 19,152 |
During September, 1,000 units in process on September 1 were completed, and of the 22,800 units entering the department, all were completed except 2,000 units that were 60% completed. Charges to Work in ProcessRolling for October were as follows:
| From Smelting Department, 26,200 units | $151,960 |
| Direct labor | 44,960 |
| Factory overhead | 24,215 |
During October, the units in process at the beginning of the month were completed, and of the 26,200 units entering the department, all were completed except 1,300 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.
2. Provide the same information for Decor by recording the October transactions in the four-column work in computations (a through disted part(1). Manamento do not require a ry, leave and RSS Con t act of production report, and print the October 1. ACCOUNT Work in Process Rolling Department ACCOUNT NO. ACCOUNT Work in Process Rolling Department ACCOUNT NO. DATE ITEM POST. REF. DEBIT CREDIT DEBIT Balance DATE ITEM POST. REF. DEBIT CREDIT DEBIT CREDIT Sept. 1 Sept. 30 al., 1,000 units, 20% completed Smelting Dept., 22,800 units at $5.6 Director Sept. 30 Sept. 30 October since October 3t Smelting Deat, 26,200 unts at $5.8 October 3t Director Factory overhead Sept. 30 Factory Overhead Finished goods Bal., 2,000 units, 60% completed October 3 October Sept. 30 Finished goods , October 31 90 completed If an amount is zero, enter in a zero". Round cost per unit answers to the nearest cent. Fan amount is zero, enter in a zero "O". Round cost per unit anwers to the nearest cent. Pittsburgh Aluminum Company Cost of Production Report Rolling Department For the Month Ended September 30 Whole Units Pittsburgh Aluminum Company Cost of Production Report-Rolling Department For the Month Ended October 31 Equivalent Units Whale Units Equivalent Units Units Direct Materials (a) Conversion (a) Units Direct Materials (a) Conversion (a) Units charged to production: Inventory in process, September 1 Units charged to production: Inventory in process, October 1 Received from Smelting Department Received from Smelting Department Total units accounted for by the Rolling Department Total units accounted for by the Rolling Department Units to be assigned costs: Units to be assigned costs: Inventory in process, September 1 Inventory in process, October 1 Started and completed in September Started and completed in October Transferred to finished goods in September Inventory in process, September 30 Transferred to finished goods in October Tnventory in process, October 31 Total units to be assigned costs Total units to be assigned costs Costs Direct Materials Conversion Total Costs Costa Direct Materiais Conversion Conte nt Cost per eu vient unit: Total costs for September in Rolling Deatment Total costs for October in Rating Department Total equivalent units Total units Cos: per equivalent unt b) Casit per equivalent unit() Cos e d to producto Theory in process. O ber Costs incurred in O ber Thventory in process, September Total costs a n d for the Rolling Department Total costs a Costs a cced to n d for by the Rolling Department bed and partially completed Casts located to completed and partly completed Theory in proces, September balance To complimenter in Sec 1 ) C om Suami work in process Started and completed in September ( To complementary in proces, October Cost of completed to work in process Started and comprend in October Transferred to finished goods in October Intory in Ger Transferred to finished goods in September (5) Drventory in process, September 30 (d) Total cost red by the Rolling Department Totalt ud by the ing Department from August to October 3. The cost per event for det materials from August to he investigated for their underlying and any be the cost revenuntor conversion costs comi tion should be 2. Provide the same information for Decor by recording the October transactions in the four-column work in computations (a through disted part(1). Manamento do not require a ry, leave and RSS Con t act of production report, and print the October 1. ACCOUNT Work in Process Rolling Department ACCOUNT NO. ACCOUNT Work in Process Rolling Department ACCOUNT NO. DATE ITEM POST. REF. DEBIT CREDIT DEBIT Balance DATE ITEM POST. REF. DEBIT CREDIT DEBIT CREDIT Sept. 1 Sept. 30 al., 1,000 units, 20% completed Smelting Dept., 22,800 units at $5.6 Director Sept. 30 Sept. 30 October since October 3t Smelting Deat, 26,200 unts at $5.8 October 3t Director Factory overhead Sept. 30 Factory Overhead Finished goods Bal., 2,000 units, 60% completed October 3 October Sept. 30 Finished goods , October 31 90 completed If an amount is zero, enter in a zero". Round cost per unit answers to the nearest cent. Fan amount is zero, enter in a zero "O". Round cost per unit anwers to the nearest cent. Pittsburgh Aluminum Company Cost of Production Report Rolling Department For the Month Ended September 30 Whole Units Pittsburgh Aluminum Company Cost of Production Report-Rolling Department For the Month Ended October 31 Equivalent Units Whale Units Equivalent Units Units Direct Materials (a) Conversion (a) Units Direct Materials (a) Conversion (a) Units charged to production: Inventory in process, September 1 Units charged to production: Inventory in process, October 1 Received from Smelting Department Received from Smelting Department Total units accounted for by the Rolling Department Total units accounted for by the Rolling Department Units to be assigned costs: Units to be assigned costs: Inventory in process, September 1 Inventory in process, October 1 Started and completed in September Started and completed in October Transferred to finished goods in September Inventory in process, September 30 Transferred to finished goods in October Tnventory in process, October 31 Total units to be assigned costs Total units to be assigned costs Costs Direct Materials Conversion Total Costs Costa Direct Materiais Conversion Conte nt Cost per eu vient unit: Total costs for September in Rolling Deatment Total costs for October in Rating Department Total equivalent units Total units Cos: per equivalent unt b) Casit per equivalent unit() Cos e d to producto Theory in process. O ber Costs incurred in O ber Thventory in process, September Total costs a n d for the Rolling Department Total costs a Costs a cced to n d for by the Rolling Department bed and partially completed Casts located to completed and partly completed Theory in proces, September balance To complimenter in Sec 1 ) C om Suami work in process Started and completed in September ( To complementary in proces, October Cost of completed to work in process Started and comprend in October Transferred to finished goods in October Intory in Ger Transferred to finished goods in September (5) Drventory in process, September 30 (d) Total cost red by the Rolling Department Totalt ud by the ing Department from August to October 3. The cost per event for det materials from August to he investigated for their underlying and any be the cost revenuntor conversion costs comi tion should be
