Work in Process Account Data for Two Months; Cost of Production Reports Pittsburgh Aluminum Company uses a process cost system 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., 1,000 units, 40% completed:     Direct materials (1,000 x $6.20) $ 6,200   Conversion (1,000 x 40% x $2.60) 1,040   $ 7,240 From Smelting Department, 22,800 units $143,640 Direct labor 38,329 Factory overhead 20,639 During September, 1,000 units in process on September 1 were completed, and of the 22,800 units entering the department, all were completed except 2,400 units that were 70% completed. Charges to Work in Process—Rolling for October were as follows: From Smelting Department, 26,200 units $170,300 Direct labor 48,760 Factory overhead 26,252 During October, the units in process at the beginning of the month were completed, and of the 26,200 units entering the department, all were completed except 1,300 units that were 90% completed.

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Work in Process Account Data for Two Months; Cost of Production Reports

Pittsburgh Aluminum Company uses a process cost system 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., 1,000 units, 40% completed:  
  Direct materials (1,000 x $6.20) $ 6,200
  Conversion (1,000 x 40% x $2.60) 1,040
  $ 7,240
From Smelting Department, 22,800 units $143,640
Direct labor 38,329
Factory overhead 20,639

During September, 1,000 units in process on September 1 were completed, and of the 22,800 units entering the department, all were completed except 2,400 units that were 70% completed. Charges to Work in Process—Rolling for October were as follows:

From Smelting Department, 26,200 units $170,300
Direct labor 48,760
Factory overhead 26,252

During October, the units in process at the beginning of the month were completed, and of the 26,200 units entering the department, all were completed except 1,300 units that were 90% completed.

**Pittsburgh Aluminum Company**

**Cost of Production Report - Rolling Department**

**For the Month Ended September 30**

---

**Units**

| **Whole Units** | **Equivalent Units** |
|-----------------|-----------------------|
|                 | **Direct Materials (a)** | **Conversion (a)**   |

---

**Units charged to production:**

- Inventory in process, September 1: **1,000**
- Received from Smelting Department: **6,200**
- Total units accounted for by the Rolling Department: *(not filled)*

**Units to be assigned costs:**

- Inventory in process, September 1: **1,000**
- Started and completed in September: *(not filled)*
- Transferred to finished goods in September: *(not filled)*
- Inventory in process, September 30: *(not filled)*
- Total units to be assigned costs: *(not filled)*

---

*Note: If an amount is zero, enter in a zero "0". Round cost per unit answers to the nearest cent.*
Transcribed Image Text:**Pittsburgh Aluminum Company** **Cost of Production Report - Rolling Department** **For the Month Ended September 30** --- **Units** | **Whole Units** | **Equivalent Units** | |-----------------|-----------------------| | | **Direct Materials (a)** | **Conversion (a)** | --- **Units charged to production:** - Inventory in process, September 1: **1,000** - Received from Smelting Department: **6,200** - Total units accounted for by the Rolling Department: *(not filled)* **Units to be assigned costs:** - Inventory in process, September 1: **1,000** - Started and completed in September: *(not filled)* - Transferred to finished goods in September: *(not filled)* - Inventory in process, September 30: *(not filled)* - Total units to be assigned costs: *(not filled)* --- *Note: If an amount is zero, enter in a zero "0". Round cost per unit answers to the nearest cent.*
**Work in Process Accounting for the Rolling Department**

**Instructions:**

1. **Objective:** Enter the balance as of September 1 in a four-column account for Work in Process—Rolling. Record the debits and credits in the account for September. Construct a cost of production report and present computations for:
   - (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
   - (d) Work in process inventory

   If an amount does not require an entry, leave it blank.

**Account: Work in Process-Rolling Department**

| Date        | Item                                | Post. Ref. | Debit  | Credit | Balance Debit | Balance Credit |
|-------------|-------------------------------------|------------|--------|--------|---------------|----------------|
| Sept. 1     | Bal., 1,000 units, 40% completed    |            | 0      | 0      | 7,240         | 0              |
| Sept. 30    | Smelting Dept., 22,800 units at $6.3|            | 143,640|        |               |                |
| Sept. 30    | Direct labor                        |            | 38,329 |        |               |                |
| Sept. 30    | Factory overhead                    |            | 20,639 |        |               |                |
| Sept. 30    | Finished goods                      |            |        |        | 202,608       | X              |
| Sept. 30    | Bal., 2,400 units, 70% completed    |            |        |        | X             |                |

**Notes:**
- If an amount is zero, enter "0."
- Round cost per unit answers to the nearest cent.
Transcribed Image Text:**Work in Process Accounting for the Rolling Department** **Instructions:** 1. **Objective:** Enter the balance as of September 1 in a four-column account for Work in Process—Rolling. Record the debits and credits in the account for September. Construct a cost of production report and present computations for: - (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 - (d) Work in process inventory If an amount does not require an entry, leave it blank. **Account: Work in Process-Rolling Department** | Date | Item | Post. Ref. | Debit | Credit | Balance Debit | Balance Credit | |-------------|-------------------------------------|------------|--------|--------|---------------|----------------| | Sept. 1 | Bal., 1,000 units, 40% completed | | 0 | 0 | 7,240 | 0 | | Sept. 30 | Smelting Dept., 22,800 units at $6.3| | 143,640| | | | | Sept. 30 | Direct labor | | 38,329 | | | | | Sept. 30 | Factory overhead | | 20,639 | | | | | Sept. 30 | Finished goods | | | | 202,608 | X | | Sept. 30 | Bal., 2,400 units, 70% completed | | | | X | | **Notes:** - If an amount is zero, enter "0." - Round cost per unit answers to the nearest cent.
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