Pittsburgh Aluminum Company uses process costing to record the costs of manufacturing rolled aluminum, which consists...

Transcribed Image Text:

Pittsburgh Aluminum Company uses process costing 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, 30% completed: Direct materials (1,000 x $3.10) Conversion (1,000 x 30 % x $1.30) From Smelting Department, 23,400 units Direct labor Factory overhead $3,100 390 $3,490 $74,880 20,179 10,865 During September, 1,000 units in process on September 1 were completed, and of the 23,400 units entering the department, all were completed except 2,200 units that were 90% completed. Charges to Work in Process-Rolling for October were as follows: From Smelting Department, 26,900 units Direct labor Factory overhead $91.460 25,940 13,960 During October, the units in process at the beginning of the month were completed, and of the 26,900 units entering the department, all were completed except 1,300 units that were 60% completed. Required: 1. Enter the balance as of September 1 in a four-column account for Work in Process-Rolling. 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 DATE ITEM Bal., 1,000 units, 30% completed September 30 Smalting Dept., 23,400 units at $3.2/unk September 30 Direct labor September 30 Factory overhead September 30 Finished goods September 30 Bal., 2,200 units, 90% completed POST. REF. DEBIT CREDIT If an amount is zero, enter in a zero "0". Round cost per unit answers to the nearest cent. Units Units charged to production: Pittsburgh Aluminum Company Cost of Production Report-Rolling Department For the Month Ended September 30 Inventory in process, September 1 Received from Smelting Department Total units accounted for by the Rolling Department Units to be assigned costs: Inventory in process, September 1 Started and completed in September Transferred to finished goods in September Inventory in process, September 30 Total units to be assigned costs ACCOUNT NO. BALANCE DEBIT BALANCE CREDIT Equivalent Units Equivalent Units Whole Units Direct Materials (a) Conversion (a) 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 ( Transferred to finished goods in September (c) Inventory in process, September: Total costs assigned b Rolling Department Costs Direct Materials Conversion Total 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 DATE October 1 ITEM Balance October 31 Smelting Dept., 26,900 units at $3.4/unit October 31 October 31 Factory overhead October 31 Finished goods October 31 Bal, 1,300 units, 60% completed ACCOUNT NO BALANCE BALANCE POST. REF DEBIT CREDIT DEBIT CREDIT If an amount is zero, enter in a zero "0". Round cost per unit answers to the nearest cent. Units Pittsburgh Aluminum Company Cost of Production Report-Rolling Department For the Month Ended October 31 Equivalent Units Whole Units Direct Materials (a) Equivalent Units 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 Costa Cost per equivalent unit: Total costs for October in Rolling Department Total equivalent units Cost per equivalent unit (b) Costs charged to production: Inventory in process, October 1 Costs incurred in October Total costs accounted for by the Rolling Department Costs allocated to completed and partially completed units: Inventory in process, October 1 balance (c) To complete inventory in process, October 1 (c) Cost of completed October 1 work in process Started and completed in October (c) Costa Direct Materials Conversion Total 00 Pittsburgh Aluminum Company uses process costing 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, 30% completed: Direct materials (1,000 x $3.10) Conversion (1,000 x 30 % x $1.30) From Smelting Department, 23,400 units Direct labor Factory overhead $3,100 390 $3,490 $74,880 20,179 10,865 During September, 1,000 units in process on September 1 were completed, and of the 23,400 units entering the department, all were completed except 2,200 units that were 90% completed. Charges to Work in Process-Rolling for October were as follows: From Smelting Department, 26,900 units Direct labor Factory overhead $91.460 25,940 13,960 During October, the units in process at the beginning of the month were completed, and of the 26,900 units entering the department, all were completed except 1,300 units that were 60% completed. Required: 1. Enter the balance as of September 1 in a four-column account for Work in Process-Rolling. 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 DATE ITEM Bal., 1,000 units, 30% completed September 30 Smalting Dept., 23,400 units at $3.2/unk September 30 Direct labor September 30 Factory overhead September 30 Finished goods September 30 Bal., 2,200 units, 90% completed POST. REF. DEBIT CREDIT If an amount is zero, enter in a zero "0". Round cost per unit answers to the nearest cent. Units Units charged to production: Pittsburgh Aluminum Company Cost of Production Report-Rolling Department For the Month Ended September 30 Inventory in process, September 1 Received from Smelting Department Total units accounted for by the Rolling Department Units to be assigned costs: Inventory in process, September 1 Started and completed in September Transferred to finished goods in September Inventory in process, September 30 Total units to be assigned costs ACCOUNT NO. BALANCE DEBIT BALANCE CREDIT Equivalent Units Equivalent Units Whole Units Direct Materials (a) Conversion (a) 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 ( Transferred to finished goods in September (c) Inventory in process, September: Total costs assigned b Rolling Department Costs Direct Materials Conversion Total 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 DATE October 1 ITEM Balance October 31 Smelting Dept., 26,900 units at $3.4/unit October 31 October 31 Factory overhead October 31 Finished goods October 31 Bal, 1,300 units, 60% completed ACCOUNT NO BALANCE BALANCE POST. REF DEBIT CREDIT DEBIT CREDIT If an amount is zero, enter in a zero "0". Round cost per unit answers to the nearest cent. Units Pittsburgh Aluminum Company Cost of Production Report-Rolling Department For the Month Ended October 31 Equivalent Units Whole Units Direct Materials (a) Equivalent Units 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 Costa Cost per equivalent unit: Total costs for October in Rolling Department Total equivalent units Cost per equivalent unit (b) Costs charged to production: Inventory in process, October 1 Costs incurred in October Total costs accounted for by the Rolling Department Costs allocated to completed and partially completed units: Inventory in process, October 1 balance (c) To complete inventory in process, October 1 (c) Cost of completed October 1 work in process Started and completed in October (c) Costa Direct Materials Conversion Total 00