Work in process account data for two months; cost of production reports Hearty Soup Co. uses process costing 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., 800 units, 30% completed: Direct materials (800 x $4.30) Conversion (800 x 30% × $1.75) From Cooking Department, 7,800 units Direct labor Factory overhead From Cooking Department, 9,600 units Direct labor Factory overhead During April, 800 units in process on April 1 were completed, and of the 7,800 units entering the department, all were completed except 550 units that were 90% completed. Charges to Work in Process-Filling for May were as follows: ACCOUNT Department During May, the units in process at the beginning of the month were completed, and of the 9,600 units entering the department, all were completed except 300 units that were 35% completed. DATE April 1 April 30 April 30 April 30 April 30 April 30 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. ITEM $44,160 12,042 6,878 $3,440 420 Bal., 800 units, 30% completed Cooking Dept., 7,800 units at $4.40 Direct labor $3,860 $34,320 8,562 6,387 Factory overhead Finished goods Bal., 550 units, 90% completed Work in Process-Filling POST. REF. DEBIT ACCOUNT NO. CREDIT BALANCE DEBIT BALANCE CREDIT
Work in process account data for two months; cost of production reports Hearty Soup Co. uses process costing 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., 800 units, 30% completed: Direct materials (800 x $4.30) Conversion (800 x 30% × $1.75) From Cooking Department, 7,800 units Direct labor Factory overhead From Cooking Department, 9,600 units Direct labor Factory overhead During April, 800 units in process on April 1 were completed, and of the 7,800 units entering the department, all were completed except 550 units that were 90% completed. Charges to Work in Process-Filling for May were as follows: ACCOUNT Department During May, the units in process at the beginning of the month were completed, and of the 9,600 units entering the department, all were completed except 300 units that were 35% completed. DATE April 1 April 30 April 30 April 30 April 30 April 30 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. ITEM $44,160 12,042 6,878 $3,440 420 Bal., 800 units, 30% completed Cooking Dept., 7,800 units at $4.40 Direct labor $3,860 $34,320 8,562 6,387 Factory overhead Finished goods Bal., 550 units, 90% completed Work in Process-Filling POST. REF. DEBIT ACCOUNT NO. CREDIT BALANCE DEBIT BALANCE CREDIT
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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Transcribed Image Text:Work in process account data for two months; cost of production reports
Hearty Soup Co. uses process costing 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., 800 units, 30% completed:
Direct materials (800 x $4.30)
Conversion (800 x 30% × $1.75)
From Cooking Department, 7,800 units
Direct labor
Factory overhead
From Cooking Department, 9,600 units
Direct labor
Factory overhead
During April, 800 units in process on April 1 were completed, and of the 7,800 units
entering the department, all were completed except 550 units that were 90%
completed.
Charges to Work in Process-Filling for May were as follows:
ACCOUNT
Department
During May, the units in process at the beginning of the month were completed, and of
the 9,600 units entering the department, all were completed except 300 units that were
35% completed.
$44,160
12,042
6,878
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.
ITEM
DATE
April 1
April 30
April 30
April 30
Factory overhead
April 30
Finished goods
April 30 Bal., 550 units, 90% completed
$3,440
420
$3,860
$34,320
8,562
6,387
Bal., 800 units, 30% completed
Cooking Dept., 7,800 units at $4.40
Direct labor
Work in Process-Filling
POST. REF.
DEBIT
ACCOUNT NO.
CREDIT
BALANCE
DEBIT
BALANCE
CREDIT
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