2. Provide the same information for October by recording the October transactions in the four-column work in process account. Contsruct 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.

3. The cost per equivalent unit for direct materials (increased or decreased) from August to October. The cost per equivalent unit for conversion costs (increased or decreased) from August to October. These changes (should or need not) be investigated for their underlying causes, and any necessary corrective actions should be taken.

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 Process-Rolling on September 1 and debits to the account during September were as follows: Bal., 1,000 units, 20% completed: Direct materials (1,000 x $7.20) Conversion (1,000 x 20% x $3.00) From Smelting Department, 22,400 units Direct labor Factory overhead $ 7,200 600 From Smelting Department, 25,800 units Direct labor Factory overhead $7,800 $163,520 43,680 23,520 During September, 1,000 units in process on September 1 were completed, and of the 22,400 units entering the department, all were completed except 2,000 units that were 60% completed. Charges to Work in Process-Rolling for October were as follows: $193,500 55,060 29,644 During October, the units in process at the beginning of the month were completed, and of the 25,800 units entering the department, all were completed except 1,300 units that were 90% 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 DATE Sept. 1 Sept. 30 Sept. 30. Sept. 30 Sept. 30 Sept. 30 Work in Process-Rolling Department ITEM Bal., 1,000 units, 20% completed Smelting Dept., 22,400 units at $7.3 Direct labor Factory overhead Finished goods Bal., 2,000 units, 60% completed POST. REF. DEBIT CREDIT ACCOUNT NO. BALANCE DEBIT CREDIT 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 Units Units charged to production: 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 Equivalent 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 (c) Transferred to finished goods in September (c) Inventory in process, September 30 (d) Total costs assigned by the Rolling Department Direct Materials Costs Conversion Total Costs ACCOUNT DATE Work in Process-Rolling Department ITEM October 1 Balance October 31 Smelting Dept., 25,800 units at $7.5 October 31 Direct labor October 31 Factory overhead October 31 Finished goods October 31 Bal., 1,300 units, 90% completed POST. REF. DEBIT CREDIT ACCOUNT NO. DEBIT Balance CREDIT 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 Units 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 Equivalent Units Direct Materials (a) Conversion (a) Costs Cost per equivalent unit: Total costs for October in Rolling Department Total equivalent units Cost per equivalent unit (b) Costs assigned 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) Transferred to finished goods in October (c) Inventory in process, October 31 (d) Total costs assigned by the Rolling Department The t Direct Materials Costs Conversion. Total Costs