Hearty 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 April 1 and debits to the account during April 2016 were as follows:
Bal., 700 units, 30% completed: | |
Direct materials (700 × $4.6) | $3,220 |
Conversion (700 × 30% × $1.75) | 368 |
$3,588 | |
From Cooking Department, 7,400 units | $34,780 |
Direct labor | 8,512 |
Factory overhead | 2,464 |
During April, 700 units in process on April 1 were completed, and of the 7,400 units entering the department, all were completed except 500 units that were 90% completed.
Charges to Work in Process-Filling for May were as follows:
From Cooking Department, 9,500 units | $46,550 |
Direct labor | 12,030 |
Factory overhead | 2,834 |
During May, the units in process at the beginning of the month were completed, and of the 9,500 units entering the department, all were completed except 400 units that were 35% completed.
Required: | |||||||||||||||
1. |
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2. |
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3. | Comment on the change in costs per equivalent unit for March through May for direct materials and conversion costs. |
Work in process filling account
1(a). | Enter the balance as of April 1, 2016, in a four-column account for Work in Process-Filling. Record the debits and the credits in the account for April. |
2(a). | Provide the same information for May by recording the May transactions in the four-column work in process account. |
Work in Process-Filling |
1 |
Date |
Item |
Debit |
Credit |
Balance Dr. |
Balance Cr. |
2 |
Apr. 1 |
Balance |
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3 |
30 |
Cooking Department |
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4 |
30 |
Direct labor |
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5 |
30 |
Factory overhead |
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6 |
30 |
Finished goods |
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7 |
30 |
Balance |
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8 |
May 31 |
Cooking Department |
||||
9 |
31 |
Direct labor |
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10 |
31 |
Factory overhead |
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11 |
31 |
Finished goods |
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12 |
31 |
Balance |
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