Question

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 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 × $4.30)	$3,440
Conversion (800 × 30% × $1.75)	420
	$3,860
From Cooking Department, 7,400 units	$32,560
Direct labor	8,528
Factory overhead	4,112

During April, 800 units in process on April 1 were completed, and of the 7,400 units entering the department, all were completed except 600 units that were 90% completed.

Charges to Work in Process-Filling for May were as follows:

From Cooking Department, 9,600 units	$44,160
Direct labor	12,008
Factory overhead	5,088

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 250 units that were 35% completed.

	Required:
1.	(a) 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. (b) Construct a cost of production report, and present computations for determining i. equivalent units of production for materials and conversion. ii. costs per equivalent unit.* iii. cost of goods finished, differentiating between units started in the prior period and units started and finished in April.* iv. work in process inventory.* * If an amount is zero, enter "0". Round your cost per unit answers to the nearest cent and final answers to the nearest dollar amount.
2.	(a) Provide the same information for May by recording the May transactions in the four-column work in process account. (b) Construct a cost of production report, and present the May computations (i through iv) listed in part 1(b).
3.	Comment on the change in costs per equivalent unit for March through May for direct materials and conversion costs. 1(a). 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. 2(a). Provide the same information for May by recording the May transactions in the four-column work in process account. Work in Process-Filling 1 Date Item Debit Credit Balance Dr. Balance Cr. 2 Apr. 1 Balance 3 30 Cooking Department 4 30 Direct labor 5 30 Factory overhead 6 30 Finished goods 7 30 Balance 8 May 31 Cooking Department 9 31 Direct labor 10 31 Factory overhead 11 31 Finished goods 12 31 Balance 1(b). Construct a cost of production report, and present computations for determining i. equivalent units of production for materials and conversion. ii. costs per equivalent unit.* iii. cost of goods finished, differentiating between units started in the prior period and units started and finished in April.* iv. work in process inventory.* * If an amount is zero, enter "0". Round your cost per unit answers to the nearest cent and final answers to the nearest dollar amount. HEARTY SOUP CO. Cost of Production Report-Filling Department For the Month Ended April 30 UNITS Whole Units Equivalent Units Direct Materials Conversion Units charged to production: Inventory in process, April 1 Received from Cooking Department Total units accounted for by the Filling Department Units to be assigned costs: Inventory in process, April 1 (30% completed) Started and completed in April Transferred to finished goods in April Inventory in process, April 30 (90% completed) Total units to be assigned costs COSTS Costs Direct Materials Conversion Total Cost per equivalent unit: Total costs for April in Filling Department Total equivalent units ÷ ÷ Cost per equivalent unit Costs assigned to production: Inventory in process, April 1 Costs incurred in April Total costs accounted for by the Filling Department Costs allocated to completed and partially completed units: Inventory in process, April 1-balance To complete inventory in process, April 1 Cost of completed April 1 work in process Started and completed in April Transferred to finished goods in April Inventory in process, April 30 Total costs assigned by the Filling Department 3. The cost per equivalent unit for direct materials     from March to May. The cost per equivalent unit for conversion costs     from March to May. These changes     be investigated for their underlying causes, and any necessary corrective actions should be taken.

Answer 1

Work in Process ACCOUNT NO Filling Deparment Account BALANCE POST REF DEBIT Date ITEM CREDIT CREDIT DEBIT Apr.1 Apr. 30 Cooking Dept, 7,400 units Apr. 30 Direct labor Apr. 30 Factory Overhead Apr. 30 Finished goods (from Cost Sheet) Apr. 30 Bal. 800 Units 30 % Completed 3,860 32,560 36,420 8,528 44,948 4,112 49,060 45,556 3,504 Bal. 600 Units 90% Completed 3,504 Work in Process Filling Deparment ACCOUNT NO Account BALANCE Date ITEM POST REF DEBIT CREDIT DEBIT CREDIT May 01 Balance May 31 Cooking Dept, 9,600 units May 31 Direct labor May 31 Factory Overhead May 31 Finished goods (from Cost Sheet) May 31 Bal. 250 Units 35% Completed 3,504 44,160 47,664 12,008 59,672 5,088 64,760 63,452 1,308 1,308

Hearty Soup Co. Cost of Production Report Filling Department For the Month Ended April 30 Whole Units Equivalent Units Conversion (a) Direct Materials (a) Units Units charged to production: Inventory in process, April 1 Received from Cooking Department 800 7,400 8,200 Total units accounted for by the Filling department Units to be assigned costs: Inventory in process, April 1 (30% Completed) Started and completed in April (7,600- 800) Transferred to finished goods in April (8,200-600) 800 560 6,800 6,800 6,800 7,360 7,600 6,800 600 Inventory in process, April 30 (90% Completed) 600 540 Total units to be assigned costs 8,200 7,400 7,900

COSTS Direct Material Conversion Total COSTS Cost per equivalent unit: A. Total costs for April in Filling Department 32,560 $ $ 12,640 7,400 B. Total Equivalent Units 7,900 4.40 $ $ C. Cost per equivalent Unit (A/B) 1.60 Cost Assigned to production: Inventory in process, April 1 Cost incurred in April (32,560+12,640) 3,860 45,200 $ Total cost accounted for by the Filling department 49,060 Cost allocated to complete and partially completed units: $ Inventory in Process, April 1 balance 3,860 896 To complete inventory in process, April 1 (560 x1.60) 896 896 $ Cost of completed April 1 Work in Process Started and completed in April Direct Material (6,800 x 4.40),Conversion (6,800 x 1.60) Transferred to finished goods in April 4,756 40,800 29,920 10,880 45,556 Inventory in Process, April 30 Direct Material (600 x 4.40), Conversion (540 x 1.60) 3,504 2,640 864 $ Total Cost assigned by the Filling department 49,060

Hearty Soup Co. Cost of Production Report Filling Department For the Month Ended May 31 Whole Units Equivalent Units Direct Materials (a) Conversion (a) Units Units charged to production: Inventory in process, May 1 Received from Cooking Department 600 9,600 Total units accounted for by the Filling department 10,200 Units to be assigned costs: Inventory in process, May 1 (90 % Completed) Started and completed in May (9,950 600) 600 60 9,350 9,350 9,350 9,350 Transferred to finished goods in May (10,200 250) 9,950 9,410 Inventory in process, May 31 (35% Completed) 250 250 88 9,600 Total units to be assigned costs 10,200 9,498

COSTS Direct Material Conversion Total COSTS Cost per equivalent unit: A. Total costs for May in Filling Department $ 44,160 $ 17,096 9,600 9,498 B. Total Equivalent Units 4.60 $ C. Cost per equivalent Unit (A/B) 1.80 Cost Assigned to production: Inventory in process, May 1 Cost incurred in May (12,008 +5,088) 3,504 61,256 $ Total cost accounted for by the Filling department 64,760 Cost allocated to complete and partially completed units: Inventory in Process, May 1 balance $ 3,504 $ To complete inventory in process, May 1 (60 x 1.80) 108 108 108 $ Cost of completed May 1 Work in Process Started and completed in May Direct Material (9,350 x 4.60), Conversion (9,350 x 1.80) Transferred to finished goods in May Inventory in Process, May 31 Direct Material (250 x4.40), Conversion (88 x 1.80) 3,612 59,840 43,010 16,830 $ 63,452 1,308 1,150 158 $ Total Cost assigned by the Filling department 64,760 Notes: Conversion (Direct labor+ Factory Overhead) Beginning Conversion % 100 % - Already completed in previous month

Calculation of Equivalent unit of conversion Beginning in April (800 x (100 % - 30 %)) Ending Balance in April (600 x 90%) 560 540 Beginning in May (600 x (100-90 %) Ending in May (250 x 35%) 60 X 88

The cost per equivalent unit for direct materials increased from March to May. The cost per equivalent unit for conversion costs increased from March to May. These changes should be investigated for their underlying causes, and any necessary corrective actions should be taken.

Answer 2

Hiw you get the finished goods solution?