Enter the balance as of April 1 in a four-column account for Work in Process—Filling. Record the debits and 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) cost per equivalent unit; (c) cost of goods finished, differentiating between units started in the prior period and units started and finished

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Chapter1: Financial Statements And Business Decisions
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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:

Bal., 600 units, 60% completed:  
  Direct materials (600 x $5.30) $ 3,180
  Conversion (600 x 60% x $2.20) 792
  $ 3,972
From Cooking Department, 13,740 units $74,196
Direct labor 19,106
Factory overhead 10,288

During April, 600 units in process on April 1 were completed, and of the 13,740 units entering the department, all were completed except 1,500 units that were 20% completed.
Charges to Work in Process—Filling for May were as follows:

From Cooking Department, 15,800 units $88,480
Direct labor 26,270
Factory overhead 14,146

During May, the units in process at the beginning of the month were completed, and of the 15,800 units entering the department, all were completed except 800 units that were 80% completed.

Required:

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

ACCOUNT Work in Process-Filling Department   ACCOUNT NO.  
  Balance
DATE ITEM POST. REF. DEBIT CREDIT DEBIT CREDIT
May 1 Balance   fill in the blank 65 fill in the blank 66 fill in the blank 67 fill in the blank 68
       31 Cooking Dept., 15,800 units at $5.6   fill in the blank 69 fill in the blank 70 fill in the blank 71 fill in the blank 72
       31 Direct labor   fill in the blank 73 fill in the blank 74 fill in the blank 75 fill in the blank 76
       31 Factory overhead   fill in the blank 77 fill in the blank 78 fill in the blank 79 fill in the blank 80
       31 Finished goods   fill in the blank 81 fill in the blank 82 fill in the blank 83 fill in the blank 84
       31 Bal., 800 units, 80% completed   fill in the blank 85 fill in the blank 86 fill in the blank 87 fill in the blank 88

 

If an amount box does not require an entry, leave it blank. Round cost per unit answers to the nearest cent.

 

Hearty Soup Co.
Cost of Production Report-Filling Department
For the Month Ended May 31
  Whole Units Equivalent Units
Units   Direct Materials (a) Conversion (a)
Units charged to production:      
Inventory in process, May 1 fill in the blank 89    
Received from Cooking Department fill in the blank 90    
Total units accounted for by the Filling Department fill in the blank 91    
Units to be assigned costs:      
Inventory in process, May 1 fill in the blank 92 fill in the blank 93 fill in the blank 94
Started and completed in May fill in the blank 95 fill in the blank 96 fill in the blank 97
Transferred to finished goods in May fill in the blank 98 fill in the blank 99 fill in the blank 100
Inventory in process, May 31 fill in the blank 101 fill in the blank 102 fill in the blank 103
Total units to be assigned costs fill in the blank 104 fill in the blank 105 fill in the blank 106



  Costs
Costs   Direct Materials   Conversion   Total
Costs per equivalent unit:                        
Total costs for May in Filling Department   $fill in the blank 107       $fill in the blank 108            
Total equivalent units   fill in the blank 109       fill in the blank 110            
Cost per equivalent unit (b)   $fill in the blank 111       $fill in the blank 112            
Costs charged to production:                        
Inventory in process, May 1                   $fill in the blank 113    
Costs incurred in May                   fill in the blank 114    
Total costs accounted for by the Filling Department                   $fill in the blank 115    
Cost allocated to completed and partially completed units:                        
Inventory in process, May 1 balance (c)                   $fill in the blank 116    
To complete inventory in process, May 1 (c)   $fill in the blank 117       $fill in the blank 118       fill in the blank 119    
Cost of completed May 1 work in process                   $fill in the blank 120    
Started and completed in May (c)   fill in the blank 121       fill in the blank 122       fill in the blank 123    
Transferred to finished goods in May (c)                   $fill in the blank 124    
Inventory in process, May 31 (d)   fill in the blank 125       fill in the blank 126       fill in the blank 127    
Total costs assigned by the Filling Department                   $fill in the blank 128    

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.

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