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., 400 units, 70% completed: Direct materials (400 x $3.1) $ 1,240 Conversion (400 x 70% x $1.3) 364 $ 1,604 From Smelting Department, 8,760 units $28,032 Direct labor 7,589 Factory overhead 4,087 During September, 400 units in process on September 1 were completed, and of the 8,760 units entering the department, all were completed except 900 units that were 40% completed. Charges to Work in Process-Rolling for October were as follows: From Smelting Department, 10,100 units $34,340 Direct labor 9,720 Factory overhead 5,235 During October, the units in process at the beginning of the month were completed, and of the 10,100 units entering the department, all were completed except 500 units that were 20% completed. Required: 1. Enter the balance as of September 1 in a four-column account 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., 400 units, 70% completed 0 0 1,604 0 Sept. 30 Smelting Dept., 8,760 units at $3.2 28,032 0 29,6367 0 Sept. 30 Direct labor 7,589 0 37,225 0 Sept. 30 Factory overhead 4,087 0 41,312 0 Sept. 30 Finished goods 0 3,384 0 Sept. 30 Bal., 900 units, 40% completed 0 0 3,384 0 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 1 400 Received from Smelting Department 8,760 Total units accounted for by the Rolling Department 9,160 pits to be assigned costs: Inventory in process, September 1 400 o 120 Started and completed in September 7,860 7,860 7,860 Transferred to finished goods in September 8,260 7,860 7,980 Inventory in process, September 30 900 900 360 Total units to be assigned costs 9,160 8,7607 8,340 Costs Costs Direct Materials Conversion Total Cost Cost per equivalent unit: Total costs for September in Rolling Department 28,032 11,676 Total equivalent units 8,760 8,340 Cost per equivalent unit (b) 3.20 $ 1.40 Costs assigned to production: Inventory in process, September 1 $ 1,604 Costs incurred in September 39,708 Total costs accounted for by the Rolling Department $ 41,312 Costs allocated to completed and partially completed units: Inventory in process, September 1 balance (c) 1,604 To complete inventory in process, September 1 (C) 168 168 Cost of completed September 1 work in process $ 1,772 Started and completed in September (c) 25,152 11,004 36,156 Transferred to finished goods in September (c) 37,928 Inventory in process, September 30 (d) 2,880 504 3,384 Total costs assigned by the Rolling Department 41,312 . 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, eave it blank. ACCOUNT Work in Process-Rolling Department ACCOUNT NO. Balance DATE ITEM POST. REF. . DEBIT CREDIT DEBIT CREDIT ctober 1 Balance 0 o 3,384 0 October 31 Smelting Dept., 10,100 units at $3.4 34,340 0 37,724 0 October 31 Direct labor 9,720 0 47,444 0 October 31 Factory overhead 5,235 o 52,679 0 October 31 Finished goods o 50,833 X 1,846 X o October 31 Bal., 500 units, 20% completed o o o f an amount is zero, enter in a zero "O". Round cost per unit answers to the nearest cent. 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 1 900 Received from Smelting Department 10,100 Total units accounted for by the Rolling Department 11,000 Units to be assigned costs: Inventory in process, October 1 900 0 540 x Started and completed in October 9,600 9,600 / 9,600 Transferred to finished goods in October 10,500 9,600 10,140 x Inventory in process, October 31 500 500 100 Total units to be assigned costs 11,000 10,100 10,240 x Costs Costs Direct Materials Conversion Total Costs Cost per equivalent unit: Total costs for October in Rolling Department 34,340 14,955 Total equivalent units 10,100 10,240 x Cost per equivalent unit (b) 3.40 1.46 Costs assigned to production: Inventory in process, October 1 3,384 Costs incurred in October 49,295 Total costs accounted for by the Rolling Department $ 52,679 Costs allocated to completed and partially completed units: Inventory in process, October 1 balance (c) $ 3,384 To complete inventory in process, October 1 (c) 789 X 789 Cost of completed October 1 work in process $ 4,173 x Started and completed in October (c) 32,640 14,020 X 46,660 x Transferred to finished goods in October (c) $ 50,833 X Inventory in process, October 31 (d) 1,700 146 X 1,846 X Total costs assigned by the Rolling Department 52,679