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HomeStyle Soup Co_cooking and filling _Process Cost Accounting

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Question;Work in Process Account Data for Two Months, Cost of Production Reports HomeStyle 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 February 1 and debits to the account during February 2012 were as follows: During February, 400 units in process on February 1 were completed, and of the 8,900 units entering the department, all were completed except 650 units that were 90% completed. Charges to Work in Process?Filling for March were as follows: During March, 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 500 units that were 35% completed. Instructions: 1. Enter the balance as of February 1, 2012, in a four-column account for Work in Process? Filling. Record the debits and the credits in the account for February. 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 February, and (d) work in process inventory. If an amount box does not require an entry, leave it blank or enter "0". ACCOUNT Work in Process-Filling Department ACCOUNT NO. BALANCE DATE ITEM POST. REF. DEBIT CREDIT DEBIT CREDIT Feb. 1 Bal., 400 units, 30% completed Feb. 29 Cooking Dept., 8,900 units at $3.80 Feb. 29 Direct labor Feb. 29 Factory overhead Feb. 29 Finished goods Feb. 29 Bal., 650 units, 90% completed If an amount is zero, leave it blank or enter "0". Round cost per unit answers to the nearest cent. Homestyle Soup Co. Cost of Production Report-Filling Department For the Month Ended February 29, 2012 Whole Units Equivalent Units Units Direct Materials (a) Conversion (a) Units charged to production: Inventory in process, February 1 Received from Cooking Department Total units accounted for by the Filling Department Units to be assigned cost: Inventory in process, February 1 Started and completed in February Transferred to finished goods in February Inventory in process, February 29 Total units to be assigned cost Costs Costs Direct Materials Conversion Total Costs Costs per equivalent unit: Total costs for February in Filling Department $ $ Total equivalent units Cost per equivalent unit (b) $ $ Costs charged to production: Inventory in process, February 1 $ Costs incurred in February Total costs accounted for by the Filling Department $ Cost allocated to completed and partially completed units: Inventory in process, February 1 balance (c) $ To complete inventory in process, February 1 (c) Cost of completed February 1 work in process $ Started and completed in February (c) $ Transferred to finished goods in February (c) $ Inventory in process, February 29 (d) Total costs assigned by the Filling Department $ 2. Provide the same information for March by recording the March transactions in the four-column work in process account. Construct a cost of production report, and present the March computations (a through d) listed in part (1). If an amount box does not require an entry, leave it blank or enter "0". ACCOUNT Work in Process-Filling Department ACCOUNT NO. Balance DATE ITEM POST. REF. DEBIT CREDIT DEBIT CREDIT March 1 Balance March 31 Cooking Dept., 9,600 units at $4.00 March 31 Direct labor March 31 Factory overhead March 31 Finished goods March 31 Bal., 500 units, 35% completed If an amount is zero, leave it blank or enter "0". Round cost per unit answers to the nearest cent. Homestyle Soup Co. Cost of Production Report-Filling Department For the Month Ended March 31, 2012 Whole Units Equivalent Units Units Direct Materials (a) Conversion (a) Units charged to production: Inventory in process, March 1 Received from Cooking Department Total units accounted for by the Filling Department Units to be assigned cost: Inventory in process, March 1 Started and completed in March Transferred to finished goods in March Inventory in process, March 31 Total units to be assigned cost Costs Costs Direct Materials Conversion Total Costs Costs per equivalent unit: Total costs for March in Filling Department $ $ Total equivalent units Cost per equivalent unit (b) $ $ Costs charged to production: Inventory in process, March 1 $ Costs incurred in March Total costs accounted for by the Filling Department $ Cost allocated to completed and partially completed units: Inventory in process, March 1 balance (c) $ To complete inventory in process, March 1 (c) $ $ Cost of completed March 1 work in process $ Started and completed in March (c) Transferred to finished goods in March (c) $ Inventory in process, March 31 (d) Total costs assigned by the Filling Department $

 

Paper#37396 | Written in 18-Jul-2015

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