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., 600 units, 80% completed: Direct materials (600 x $ 4.30) $ 2,580 Conversion (600 x 80% x $1.80) 864 $ 3,444 From Cooking Department, 12,900 units $56,760 Direct labor 15,129 Factory overhead 8,146

During April, 600 units in process on April 1 were completed, and of the 12,900 units entering the department, all were completed except 1,100 units that were 30% completed. Charges to Work in ProcessFilling for May were as follows:

From Cooking Department, 14,800 units $68,080 Direct labor 19,620 Factory overhead 10,560

During May, the units in process at the beginning of the month were completed, and of the 14,800 units entering the department, all were completed except 800 units that were 40% completed.

Required:

1. Enter the balance as of April 1, in a four-column account for Work in Process Filling. Record the debits and the 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) costs 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.

Costs Costs Direct Materials Conversion Total Costs Costs per equivalent unit: Total costs for May in Filling Department Total equivalent units Cost per equivalent unit (b) Costs charged to production: Inventory in process, May 1 Costs incurred in May Total costs accounted for by the Filling Department Cost allocated to completed and partially completed units: Inventory in process, May 1 balance (c) To complete inventory in process, May 1 (c) Cost of completed May 1 work in process Started and completed in May (c) Transferred to finished goods in May (c) Inventory in process, May 31 (d) Total costs assigned by the Filling Department 3. The cost per equivalent unit for direct materials from March to May. The cost per equivalent unit for conversion costs be investigated for their underlying causes, and any necessary corrective actions should be taken