won ton soup co uses a process cost system to record the costs of processing soup wh 647626

Won Ton Soup Co. uses a process cost system to record the costs of processing soup, which requires a series of three processes. The inventory of Work in Process—Filling on July 1 and debits to the account during July 2008 were as follows:

Bal., 2,000 units, 30% completed:

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Direct materials (2,000 × $3.20)


Conversion (2,000 × 30% × $1.25)




From Cooking Department, 126,000 units


Direct labor


Factory overhead


During July, 2,000 units in process on July 1 were completed, and of the 126,000 units entering the department, all were completed except 2,500 units that were 90% completed.

Charges to Work in Process—Filling for August were as follows:

From Cooking Department, 138,000 units


Direct labor


Factory overhead


During August, the units in process at the beginning of the month were completed, and of the 138,000 units entering the department, all were completed except 4,000 units that were 35% completed.


1. Enter the balance as of July 1, 2008, in a four column account for Work in Process— Filling. Record the debits and the credits in the account for July. Construct a cost of production report, and present computations for determining (a) equivalent units of production for materials and conversion, (b) equivalent costs per unit, (c) cost of goods finished, differentiating between units started in the prior period and units started and finished in July, and (d) work in process inventory.

2. Provide the same information for August by recording the August transactions in the four column work in process account. Construct a cost of production report, and present the August computations (a through d) listed in part (1).

3. Comment on the change in cost per equivalent unit for June through August for direct materials and conversion costs.

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