Pittsburgh Aluminum Company uses a process cost system to record the costs of manufacturing rolled aluminum, which consists of the smeiting and rolling processes. Matenals 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, 1,000 units, 30% completedi Direct materals (1,000 x 4.60) $ 4,600 Conversion (1,000 x 30% x$1.90) 570 $ 5,170 From Smelting Department, 23,300 units $109,510 Direct labor 29,307 Factory overhead 15,780 During Septembec 1,000 units n process on September 1 were completed, and of the 23,300 units entering the department, all were completed except 2,700 unta that were 90% completed. Charges to Work in Process-Roling for October were as folows From Smelting Department, 26,800 units $131,320 Direct labor 36,240 Factory overhead 19,515 Durng October the units n process at the beonning of the month were completed, and of the 26,00 units entering the depertment, a were completed except 1.200 unita thet were 60% completed Required:
Pittsburgh Aluminum Company uses a process cost system to record the costs of manufacturing rolled aluminum, which consists of the smeiting and rolling processes. Matenals 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, 1,000 units, 30% completedi Direct materals (1,000 x 4.60) $ 4,600 Conversion (1,000 x 30% x$1.90) 570 $ 5,170 From Smelting Department, 23,300 units $109,510 Direct labor 29,307 Factory overhead 15,780 During Septembec 1,000 units n process on September 1 were completed, and of the 23,300 units entering the department, all were completed except 2,700 unta that were 90% completed. Charges to Work in Process-Roling for October were as folows From Smelting Department, 26,800 units $131,320 Direct labor 36,240 Factory overhead 19,515 Durng October the units n process at the beonning of the month were completed, and of the 26,00 units entering the depertment, a were completed except 1.200 unita thet were 60% completed Required:
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Concept explainers
Process Costing
Process costing is a sort of operation costing which is employed to determine the value of a product at each process or stage of producing process, applicable where goods produced from a series of continuous operations or procedure.
Job Costing
Job costing is adhesive costs of each and every job involved in the production processes. It is an accounting measure. It is a method which determines the cost of specific jobs, which are performed according to the consumer’s specifications. Job costing is possible only in businesses where the production is done as per the customer’s requirement. For example, some customers order to manufacture furniture as per their needs.
ABC Costing
Cost Accounting is a form of managerial accounting that helps the company in assessing the total variable cost so as to compute the cost of production. Cost accounting is generally used by the management so as to ensure better decision-making. In comparison to financial accounting, cost accounting has to follow a set standard ad can be used flexibly by the management as per their needs. The types of Cost Accounting include – Lean Accounting, Standard Costing, Marginal Costing and Activity Based Costing.
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Question
Transcribed Image Text:1. Enter the balance as of September 1 in a four-column account for 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, (e) 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, 1,000 units, 30% completed
5,170
Sept. 30
Smelting Dept., 23,300 units at $4.7
109,510
114,680
Sept. 30
Direct labor
29,307
143,987
Sept. 30
Factory overhead
15,780
159,767
Sept. 30
Finished goods
Sept. 30
Bal., 2,700 units, 90% completed
Transcribed Image Text:Pittsburgh Aluminum Company uses a process cost system to record the costs of manufacturing rolled aluminum, which consists of the smeiting and rolling processes. Matenals
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, 1,000 units, 30% completed:
Direct matenals (1,000 x $4.60)
$4,600
Conversion (1,000 x 30% x $1.90)
570
$ 5,170
From Smelting Department, 23,300 units
$109,510
Direct labor
29,307
Factory overhead
15,780
During September 1.000 units in process on September 1 were completed, and of the 23.300 units entering the department, all were completed except 2,700 unts that were
90% completed. Charges to Work in Process-Rolling for October were as follows:
From Smelting Department, 26.800 units
$131,320
Direct labor
36,240
Factory overhead
19.515
Dunng October the units in process at the begnning of the month were completed, and of the 26,800 units entering the depertment, al were completed except 1200 unita that
were 60 commpleted
Required:
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