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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 ProcessRolling on September 1 and debits to the account during September were as follows:

Bal., 400 units, 20% completed:
	Direct materials (400 x $4.8)	$ 1,920
	Conversion (400 x 20% x $2)	160
		$ 2,080
From Smelting Department, 9,240 units		$45,276
Direct labor		12,613
Factory overhead		6,791

During September, 400 units in process on September 1 were completed, and of the 9,240 units entering the department, all were completed except 800 units that were 60% completed. Charges to Work in ProcessRolling for October were as follows:

From Smelting Department, 10,600 units	$54,060
Direct labor	16,000
Factory overhead	8,618

During October, the units in process at the beginning of the month were completed, and of the 10,600 units entering the department, all were completed except 500 units that were 90% completed.

Required:

1. Enter the balance as of September 1 in a four-column account for Work in ProcessRolling. 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.

ACCOUNT	Work in Process-Rolling Department				ACCOUNT NO.
					BALANCE
DATE	ITEM	POST. REF.	DEBIT	CREDIT	DEBIT	CREDIT
Sept. 1	Bal., 400 units, 20% completed		0	0	2080	0
Sept. 30	Smelting Dept., 9,240 units at $4.9		45276	0	47356	0
Sept. 30	Direct labor		12613	0	59969	0
Sept. 30	Factory overhead		6791	0	66760	0
Sept. 30	Finished goods
Sept. 30	Bal., 800 units, 60% completed

If an amount is zero, enter in a zero "0". Round cost per unit answers to the nearest cent.

Pittsburgh Aluminum Company Cost of Production Report-Rolling Department For the Month Ended September 30
	Whole Units	Equivalent Units
Units		Direct Materials (a)	Conversion (a)
Units charged to production:	400
Inventory in process, September 1	9240
Received from Smelting Department	9640
Total units accounted for by the Rolling Department	400	0	320
Units to be assigned costs:
Inventory in process, September 1	400	0	320
Started and completed in September	8440	8440	8440
Transferred to finished goods in September	8840	8440	8760
Inventory in process, September 30	800	800	480
Total units to be assigned costs	9640	9240	9160

	Costs
Costs		Direct Materials				Conversion				Total Costs
Cost per equivalent unit:
Total costs for September in Rolling Department
Total equivalent units
Cost per equivalent unit (b)
Costs assigned to production:
Inventory in process, September 1
Costs incurred in September
Total costs accounted for by the Rolling Department
Costs allocated to completed and partially completed units:
Inventory in process, September 1 balance (c)
To complete inventory in process, September 1 (c)
Cost of completed September 1 work in process
Started and completed in September (c)
Transferred to finished goods in September (c)
Inventory in process, September 30 (d)
Total costs assigned by the Rolling Department

2. Provide the same information for October by recording the October transactions in the four-column work-in-process account. Construct a cost of production report, and present the October computations (a through d) listed in part (1). 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
October 1	Balance
October 31	Smelting Dept., 10,600 units at $5.1
October 31	Direct labor
October 31	Factory overhead
October 31	Finished goods
October 31	Bal., 500 units, 90% completed

If an amount is zero, enter in a zero "0". Round cost per unit answers to the nearest cent.

Pittsburgh Aluminum Company Cost of Production Report-Rolling Department For the Month Ended October 31
	Whole Units	Equivalent Units
Units		Direct Materials (a)	Conversion (a)
Units charged to production:
Inventory in process, October 1
Received from Smelting Department
Total units accounted for by the Rolling Department
Units to be assigned costs:
Inventory in process, October 1
Started and completed in October
Transferred to finished goods in October
Inventory in process, October 31
Total units to be assigned costs

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