Required: 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, (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.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
icon
Related questions
icon
Concept explainers
Topic Video
Question

3

Work in Process Account Data for Two Months; Cost of Production Reports
Pittsburgh Aluminum Company uses process costing 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., 600 units, 30% completed:
Direct materials (600 x $4.10)
Conversion (600x 30% x $1.70)
$2,460
306
$2,766
From Smelting Department, 14,040 units
$58,968
Direct labor
15,868
Factory overhead
8,544
During September, 600 units in process on September 1 were completed, and of the 14,040 units entering the department, all were completed except 1,000 units that
were 90% completed. Charges to Work in Process-Rolling for October were as follows:
From Smelting Department, 16,100 units
Direct labor
Factory overhead
During October, the units in process at the beginning of the month were completed, and of the 16,100 units entering the department, all were completed except 800 units
that were 60% completed.
$70,840
19,610
10,562
Required:
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, (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.
Transcribed Image Text:Work in Process Account Data for Two Months; Cost of Production Reports Pittsburgh Aluminum Company uses process costing 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., 600 units, 30% completed: Direct materials (600 x $4.10) Conversion (600x 30% x $1.70) $2,460 306 $2,766 From Smelting Department, 14,040 units $58,968 Direct labor 15,868 Factory overhead 8,544 During September, 600 units in process on September 1 were completed, and of the 14,040 units entering the department, all were completed except 1,000 units that were 90% completed. Charges to Work in Process-Rolling for October were as follows: From Smelting Department, 16,100 units Direct labor Factory overhead During October, the units in process at the beginning of the month were completed, and of the 16,100 units entering the department, all were completed except 800 units that were 60% completed. $70,840 19,610 10,562 Required: 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, (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.
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 5 steps with 9 images

Blurred answer
Knowledge Booster
Costing Systems
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education