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., 400 units, 70% completed: Direct materials (400 x $4.10) $ 1,640 Conversion (400 x 70% x $1.70) 476 $ 2,116 From Smelting Department, 9,320 units $39,144 Direct labor 9,768 Factory overhead 5,260 During September, 400 units in process on September 1 were completed, and of the 9,320 units entering the department, all were completed except 1,000 units that were 40% completed. Charges to Work in Process—Rolling for October were as follows: From Smelting Department, 10,700 units $47,080 Direct labor 13,460 Factory overhead 7,250 During October, the units in process at the beginning of the month were completed, and of the 10,700 units entering the department, all were completed except 500 units that were 20% 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. 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.
Pittsburgh Aluminum Company uses a
| Bal., 400 units, 70% completed: | ||
| Direct materials (400 x $4.10) | $ 1,640 | |
| Conversion (400 x 70% x $1.70) | 476 | |
| $ 2,116 | ||
| From Smelting Department, 9,320 units | $39,144 | |
| Direct labor | 9,768 | |
| Factory overhead | 5,260 |
During September, 400 units in process on September 1 were completed, and of the 9,320 units entering the department, all were completed except 1,000 units that were 40% completed. Charges to Work in Process—Rolling for October were as follows:
| From Smelting Department, 10,700 units | $47,080 |
| Direct labor | 13,460 |
| Factory overhead | 7,250 |
During October, the units in process at the beginning of the month were completed, and of the 10,700 units entering the department, all were completed except 500 units that were 20% 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.
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.
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