Work in Process Account Data for Two Months; Cost of ProductionReports Pittsburgh Aluminum Company...

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Work in Process Account Data for Two Months; Cost of ProductionReports Pittsburgh Aluminum Company uses a process cost system torecord the costs of manufacturing rolled aluminum, which consistsof the smelting and rolling processes. Materials are entered fromsmelting at the beginning of the rolling process. The inventory ofWork in Process—Rolling on September 1 and debits to the accountduring September were as follows: Bal., 2,600 units, ¼ completed:Direct materials (2,600 x $15.50) $40,300 Conversion (2,600 x ¼ x$8.50) 5,525 $45,825 From Smelting Department, 28,900 units$462,400 Direct labor 158,920 Factory overhead 101,402 DuringSeptember, 2,600 units in process on September 1 were completed,and of the 28,900 units entering the department, all were completedexcept 2,900 units that were 4/5 completed. Charges to Work inProcess—Rolling for October were as follows: From SmeltingDepartment, 31,000 units $511,500 Direct labor 162,850 Factoryoverhead 104,494 During October, the units in process at thebeginning of the month were completed, and of the 31,000 unitsentering the department, all were completed except 2,000 units thatwere 2/5 completed. Required: 1. Enter the balance as of September1 in a four-column account for Work in Process—Rolling. Record thedebits and the credits in the account for September. Construct acost 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 unitsstarted and finished in September, and (d) work in processinventory. If an amount box does not require an entry, leave itblank. ACCOUNT Work in Process-Rolling Department ACCOUNT NO.BALANCE DATE ITEM POST. REF. DEBIT CREDIT DEBIT CREDIT Sept. 1Bal., 2,600 units, 1/4 completed 45,825 Sept. 30 Smelting Dept.,28,900 units at $16.00/unit 462,400 508,225 Sept. 30 Direct labor158,920 667,145 Sept. 30 Factory overhead 101,402 768,547 Sept. 30Finished goods 702,195 66,352 Sept. 30 Bal., 2,900 units, 4/5completed 66,352 If an amount is zero, enter in a zero "0". Roundcost per unit answers to the nearest cent. Pittsburgh AluminumCompany Cost of Production Report-Rolling Department For the MonthEnded September 30 Whole Units Equivalent Units Units DirectMaterials (a) Conversion (a) Units charged to production: Inventoryin process, September 1 2,600 Received from Smelting Department28,900 Total units accounted for by the Rolling Department 31,500Units to be assigned costs: Inventory in process, September 1 2,6001,950 Started and completed in September 26,000 26,000 26,000Transferred to finished goods in September 28,600 26,000 27,950Inventory in process, September 30 2,900 2,900 2,320 Total units tobe assigned costs 31,500 28,900 30,270 Costs Costs Direct MaterialsConversion Total Costs Cost per equivalent unit: Total costs forSeptember in Rolling Department $ 462,400 $ 260,322 Totalequivalent units 28,900 30,270 Cost per equivalent unit (b) $ 16.00$ 8.60 Costs assigned to production: Inventory in process,September 1 $ 45,825 Costs incurred in September 722,722 Totalcosts accounted for by the Rolling Department $ 768,547 Costsallocated to completed and partially completed units: Inventory inprocess, September 1 balance (c) $ 45,825 To complete inventory inprocess, September 1 (c) $ $ 16,770 16,770 Cost of completedSeptember 1 work in process $ 62,595 Started and completed inSeptember (c) 416,000 223,600 639,600 Transferred to finished goodsin September (c) $ 702,195 Inventory in process, September 30 (d)46,400 19,952 66,352 Total costs assigned by the Rolling Department$ 768,547 2. Provide the same information for October by recordingthe October transactions in the four-column work in processaccount. Construct a cost of production report, and present theOctober computations (a through d) listed in part (1). If an amountbox does not require an entry, leave it blank. ACCOUNT Work inProcess-Rolling Department ACCOUNT NO. Balance DATE ITEM POST. REF.DEBIT CREDIT DEBIT CREDIT Oct. 1 Balance Oct. 31 Smelting Dept.,31,000 units at $16.50/unit 511,500 577,852 Oct. 31 Direct labor162,850 740,702 Oct. 31 Factory overhead 104,494 845,196 Oct. 31Finished goods 805,156 40,040 Oct. 31 Bal., 2,000 units, 2/5completed 40,040 If an amount is zero, enter in a zero "0". Roundcost per unit answers to the nearest cent. Pittsburgh AluminumCompany Cost of Production Report-Rolling Department For the MonthEnded October 31 Whole Units Equivalent Units Units DirectMaterials (a) Conversion (a) Units charged to production: Inventoryin process, October 1 2,900 Received from Smelting Department31,000 Total units accounted for by the Rolling Department 33,900Units to be assigned costs: Inventory in process, October 1 2,900580 Started and completed in October 29,000 29,000 29,000Transferred to finished goods in October 31,900 29,000 29,580Inventory in process, October 31 2,000 2,000 800 Total units to beassigned costs 33,900 31,000 30,380 Costs Costs Direct MaterialsConversion Total Costs Cost per equivalent unit: Total costs forOctober in Rolling Department $ 511,500 $ 267,344 Total equivalentunits 31,000 30,380 Cost per equivalent unit (b) $ 16.50 $ 8.80Costs assigned to production: Inventory in process, October 1 $66,352 Costs incurred in October 778,844 Total costs accounted forby the Rolling Department $ 845,196 Costs allocated to completedand partially completed units: Inventory in process, October 1balance (c) $ 66,352 To complete inventory in process, October 1(c) $ $ 5,104 5,104 Cost of completed October 1 work in process $71,456 Started and completed in October (c) 478,500 255,200 733,700Transferred to finished goods in October (c) $ 805,156 Inventory inprocess, October 31 (d) 33,000 7,040 40,040 Total costs assigned bythe Rolling Department $ 845,196 3. The cost per equivalent unitfor direct materials increased from August to October. The cost perequivalent unit for conversion costs increased from August toOctober. These changes should be investigated for their underlyingcauses, and any necessary corrective actions should be taken.

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1a Balances on Sept 1 for Workin Progress Rolling Date Item Debit Credit Balance Debit Credit Sept 1 Beginning 2600 units 14 completed 45825 Sept 30 Smelting Dept 28900 units 16unit 462400 508225 Sept 30 Direct Labor 158920 667145 Sept 30 Factory Overhead 101402 768547 Sept 30 Finished Goods 702195 66352 Sept 30 Balance 2900 units 45 completed 66352 1b Cost of Production Report P A Company Cost of Production Report Rolling Department For the month ended Sept 30 Units Whole Units Equivalent Units Direct Material Conversion Units charged to Production Inventory in progress sept 1 2600 Add Received from Smelting Department 28900 Total Units 31500 Units to be assigned cost Inventory in Progress sept 1 14 completed2600114 2600 1950 Add See Answer

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In: AccountingWork in Process Account Data for Two Months; Cost of ProductionReports Pittsburgh Aluminum Company uses...Work in Process Account Data for Two Months; Cost of ProductionReports Pittsburgh Aluminum Company uses a process cost system torecord the costs of manufacturing rolled aluminum, which consistsof the smelting and rolling processes. Materials are entered fromsmelting at the beginning of the rolling process. The inventory ofWork in Process—Rolling on September 1 and debits to the accountduring September were as follows: Bal., 2,600 units, ¼ completed:Direct materials (2,600 x $15.50) $40,300 Conversion (2,600 x ¼ x$8.50) 5,525 $45,825 From Smelting Department, 28,900 units$462,400 Direct labor 158,920 Factory overhead 101,402 DuringSeptember, 2,600 units in process on September 1 were completed,and of the 28,900 units entering the department, all were completedexcept 2,900 units that were 4/5 completed. Charges to Work inProcess—Rolling for October were as follows: From SmeltingDepartment, 31,000 units $511,500 Direct labor 162,850 Factoryoverhead 104,494 During October, the units in process at thebeginning of the month were completed, and of the 31,000 unitsentering the department, all were completed except 2,000 units thatwere 2/5 completed. Required: 1. Enter the balance as of September1 in a four-column account for Work in Process—Rolling. Record thedebits and the credits in the account for September. Construct acost 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 unitsstarted and finished in September, and (d) work in processinventory. If an amount box does not require an entry, leave itblank. ACCOUNT Work in Process-Rolling Department ACCOUNT NO.BALANCE DATE ITEM POST. REF. DEBIT CREDIT DEBIT CREDIT Sept. 1Bal., 2,600 units, 1/4 completed 45,825 Sept. 30 Smelting Dept.,28,900 units at $16.00/unit 462,400 508,225 Sept. 30 Direct labor158,920 667,145 Sept. 30 Factory overhead 101,402 768,547 Sept. 30Finished goods 702,195 66,352 Sept. 30 Bal., 2,900 units, 4/5completed 66,352 If an amount is zero, enter in a zero "0". Roundcost per unit answers to the nearest cent. Pittsburgh AluminumCompany Cost of Production Report-Rolling Department For the MonthEnded September 30 Whole Units Equivalent Units Units DirectMaterials (a) Conversion (a) Units charged to production: Inventoryin process, September 1 2,600 Received from Smelting Department28,900 Total units accounted for by the Rolling Department 31,500Units to be assigned costs: Inventory in process, September 1 2,6001,950 Started and completed in September 26,000 26,000 26,000Transferred to finished goods in September 28,600 26,000 27,950Inventory in process, September 30 2,900 2,900 2,320 Total units tobe assigned costs 31,500 28,900 30,270 Costs Costs Direct MaterialsConversion Total Costs Cost per equivalent unit: Total costs forSeptember in Rolling Department $ 462,400 $ 260,322 Totalequivalent units 28,900 30,270 Cost per equivalent unit (b) $ 16.00$ 8.60 Costs assigned to production: Inventory in process,September 1 $ 45,825 Costs incurred in September 722,722 Totalcosts accounted for by the Rolling Department $ 768,547 Costsallocated to completed and partially completed units: Inventory inprocess, September 1 balance (c) $ 45,825 To complete inventory inprocess, September 1 (c) $ $ 16,770 16,770 Cost of completedSeptember 1 work in process $ 62,595 Started and completed inSeptember (c) 416,000 223,600 639,600 Transferred to finished goodsin September (c) $ 702,195 Inventory in process, September 30 (d)46,400 19,952 66,352 Total costs assigned by the Rolling Department$ 768,547 2. Provide the same information for October by recordingthe October transactions in the four-column work in processaccount. Construct a cost of production report, and present theOctober computations (a through d) listed in part (1). If an amountbox does not require an entry, leave it blank. ACCOUNT Work inProcess-Rolling Department ACCOUNT NO. Balance DATE ITEM POST. REF.DEBIT CREDIT DEBIT CREDIT Oct. 1 Balance Oct. 31 Smelting Dept.,31,000 units at $16.50/unit 511,500 577,852 Oct. 31 Direct labor162,850 740,702 Oct. 31 Factory overhead 104,494 845,196 Oct. 31Finished goods 805,156 40,040 Oct. 31 Bal., 2,000 units, 2/5completed 40,040 If an amount is zero, enter in a zero "0". Roundcost per unit answers to the nearest cent. Pittsburgh AluminumCompany Cost of Production Report-Rolling Department For the MonthEnded October 31 Whole Units Equivalent Units Units DirectMaterials (a) Conversion (a) Units charged to production: Inventoryin process, October 1 2,900 Received from Smelting Department31,000 Total units accounted for by the Rolling Department 33,900Units to be assigned costs: Inventory in process, October 1 2,900580 Started and completed in October 29,000 29,000 29,000Transferred to finished goods in October 31,900 29,000 29,580Inventory in process, October 31 2,000 2,000 800 Total units to beassigned costs 33,900 31,000 30,380 Costs Costs Direct MaterialsConversion Total Costs Cost per equivalent unit: Total costs forOctober in Rolling Department $ 511,500 $ 267,344 Total equivalentunits 31,000 30,380 Cost per equivalent unit (b) $ 16.50 $ 8.80Costs assigned to production: Inventory in process, October 1 $66,352 Costs incurred in October 778,844 Total costs accounted forby the Rolling Department $ 845,196 Costs allocated to completedand partially completed units: Inventory in process, October 1balance (c) $ 66,352 To complete inventory in process, October 1(c) $ $ 5,104 5,104 Cost of completed October 1 work in process $71,456 Started and completed in October (c) 478,500 255,200 733,700Transferred to finished goods in October (c) $ 805,156 Inventory inprocess, October 31 (d) 33,000 7,040 40,040 Total costs assigned bythe Rolling Department $ 845,196 3. The cost per equivalent unitfor direct materials increased from August to October. The cost perequivalent unit for conversion costs increased from August toOctober. These changes should be investigated for their underlyingcauses, and any necessary corrective actions should be taken.