make sure complete all parts Work in Process Account Data fo

make sure complete all parts

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 Process—filling on April 1 and debits to the account during April were as follows:

During April, 1,000 units in process on April 1 were completed, and of the 22,200 units entering the department, all were completed except 1,700 units that were 90% completed. Charges to Work in Process—Filling for May were as follows:

During May, the units in process at the beginning of the month were completed, and of the 25,500 units entering the department, all were completed except 1,300 units that were 60% 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.

If an amount is zero, enter in a zero \"0\". Round cost per unit answers to the nearest cent.

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.

If an amount is zero, enter in a zero \"0\". Round cost per unit answers to the nearest cent.

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.

Bal., 1,000 units, 30% completed:
	Direct materials (1,000 x $ 5.30)	$ 5,300
	Conversion (1,000 x 30% x $2.20)	660
	$ 5,960
From Cooking Department, 22,200 units	$119,880
Direct labor	33,981
Factory overhead	18,298

Solution

ACCOUNT Work in Process-Filling Department ACCOUNT NO. BALANCE DATE ITEM POST. REF. DEBIT CREDIT DEBIT CREDIT Apr. 1 Bal., 1,000 units, 30% completed $5,960 Apr. 30 Cooking Dept., 22,200 units at $5.40 119880 $125,840 Apr. 30 Direct labor 33981 $159,821 Apr. 30 Factory overhead 18298 $178,119 Apr. 30 Finished goods $165,420 $12,699 Apr. 30 Bal., 1,700 units, 90% completed $12,699 Cost of Production Report-Filling Department For the Month Ended April 30 Whole Units Equivalent Units Units Direct Materials (a) Conversion (a) Units charged to production: Inventory in process, April 1 1000 1000 1000 Received from Cooking Department 22200 22200 22200 Total units accounted for by the Filling Department 23200 23200 23200 Units to be assigned costs: Inventory in process, April 1 A 0 700 Started and completed in April (22200-1700) E 20500 20500 Transferred to finished goods in April 20500 21200 Inventory in process, April 30 (1700*90%) F 1700 1530 Total units to be assigned costs 22200 22730 Costs Costs Direct Materials Conversion Total Costs Costs per equivalent unit: Total costs for April in Filling Department    C 119880 52279 172159 $ Total equivalent units   D` 22200 22730 Cost per equivalent unit (b) C/D 5.4 2.3 7.7 $ Costs charged to production: Inventory in process, April 1 $5,960 Costs incurred in April 119880 52279 172159 Total costs accounted for by the Filling Department $119,880 $52,279 $178,119 Cost allocated to completed and partially completed units: Inventory in process, April 1 balance (c) $5,960 To complete inventory in process, April 1 © (b*A) 1610 1610 $ Cost of completed April 1 work in process $7,570 Started and completed in April © E*b 110700 47150 157850 Transferred to finished goods in April (c) 110700 47150 $165,420 Inventory in process, April 30 (d) F*b 9180 3519 12699 Total costs assigned by the Filling Department 119880 50669 178119 ACCOUNT Work in Process-Filling Department ACCOUNT NO. BALANCE DATE ITEM POST. REF. DEBIT CREDIT DEBIT CREDIT 1-May Balance $12,699 31-May Cooking Dept., 25,500 units at $5.6 142800 $155,499 31-May Direct labor 39230 $194,729 31-May Factory overhead 21130 $215,859 31-May Finished goods $206,707 $9,152 31-May Bal., 1,300 units, 60% completed $9,152 Cost of Production Report-Filling Department For the Month Ended April 30 Whole Units Equivalent Units Units Direct Materials (a) Conversion (a) Units charged to production: Inventory in process, April 1 1700 1700 1700 Received from Cooking Department 25500 25500 25500 Total units accounted for by the Filling Department 27200 27200 27200 Units to be assigned costs: Inventory in process, April 1 A 0 170 Started and completed in April (25500-1300) E 24200 24200 Transferred to finished goods in April 24200 24370 Inventory in process, April 30 (1300*60%) F 1300 780 Total units to be assigned costs 25500 25150 Costs Costs Direct Materials Conversion Total Costs Costs per equivalent unit: Total costs for April in Filling Department    C 142800 60360 203160 $ Total equivalent units   D` 25500 25150 Cost per equivalent unit (b) C/D 5.6 2.4 8 $ Costs charged to production: Inventory in process, April 1 $12,699 Costs incurred in April 142800 60360 203160 Total costs accounted for by the Filling Department $142,800 $60,360 $215,859 Cost allocated to completed and partially completed units: Inventory in process, April 1 balance (c) $12,699 To complete inventory in process, April 1 © (b*A) 408 408 $ Cost of completed April 1 work in process $13,107 Started and completed in April © E*b 135520 58080 193600 Transferred to finished goods in April (c) 135520 58080 $206,707 Inventory in process, April 30 (d) F*b 7280 1872 9152 Total costs assigned by the Filling Department 142800 59952 215859 ans 3 March april May Cost per equivalent units Direct Material 5.3 5.4 5.6 Conversion cost 2.2 2.3 2.4 There is increase in cost