Question

PR 20-4A Work in process account data for two months; cost of production oBJ. 1, 2,3, 4 reports Hearty Soup Co. uses a process cost system to record the costs of processing soup, which requires the cooking and filling processes. Materials are entered from the cooking pro- cess at the beginning of the filling process. The inventory of Work in Process-Filling on Apri 1 and debits to the account during April were as follows: Bal, 800 units, 30% completed 3,440 420 3,860 $34,320 8,562 6,387 Direct materials (800 × $4.30) Conversion (800 30% $1.75) From Cooking Department, 7,800 units Direct labor Factory overhead During April, 800 units in process on Apri 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: From Cooking Department, 9,600 units Direct labor Factory overhead 44,160 12,042 6,878 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. Instructions 1. Enter the balance as of April 1 in a four-column account for Work in Process-Filling Record the debits and 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) cost 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

Answer 1

1.

Beggining units	800	Transferred out	8,050
Started into production	7800	Ending units	550
	8600		8600
Equivalent units	Material	Conversion
Beginning units	800	800
Completion in current period	0%	70%
A	0	560
Units started and completed	7250	7250
Completion	100%	100%
B	7250	7250
Ending Units	550	550
Completion	100%	90%
C	550	495
Total units A+B+C	7800	8305
Cost per equivalent units
Per unit cost	Cost	Total units	Per unit cost
Material cost	34320	7800	4.40
Conversion cost	14949	8305	1.80
Total	49269

Cost of goods sold	Material	conversion cost
Beginning work in progress A	3440	420	3860
Beginning inventory completed
Completion	0%	70%
Per unit cost	4.40	1.80
Units	800	800
Total cost   B	0	1008	1008
Units started and completed
Completion	100%	100%
Per unit cost	4.40	1.80
Units	7250	7250
Total cost    C	31900	13050	44950
Total cost A+B+C	35340	14058	49818
Ending work in progress
Completion	100%	90%
Per unit cost	4.40	1.80
Units	550	550
Total cost	2420	891	3311