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Alcoa Inc. is the world’s largest producer of aluminum products. One product that Alcoa manufactures is aluminum sheet products for the aerospace industry. The entire output of the Smelting Department is transferred to the Rolling Department. Part of the fully processed goods from the Rolling Department are sold as rolled sheet, and the remainder of the goods are transferred to the Converting Department for further processing into sheared sheet. Prepare a chart of the flow of costs from the processing department accounts into the finished goods accounts and then into the cost of goods sold account. The relevant accounts are as follows: Cost of Goods Sold Finished Goods—Rolled Sheet Materials Finished Goods—Sheared Sheet Factory Overhead—Smelting Department Work in Process—Smelting Department Factory Overhead—Rolling Department Work in Process—Rolling Department Factory Overhead—Converting Department Work in Process—Converting Department

The Converting Department of Rhino Napkin Company had 1,800 units in work in process at the beginning of the period, which were 75% complete. During the period, 13,500 units were completed and transferred to the Packing Department. There were 1,200 units in process at the end of the period, which were 40% complete. Direct materials are placed into the process at the beginning of production. Determine the number of equivalent units of production with respect to direct materials and conversion costs.

Prepare a cost of production report for the Cutting Department of Arizona Carpet Company for July 2006. Use the average cost method with the following data: Work in process, July 1, 10,000 units, 70% complete $ 50,000 Materials added during July from Weaving Dept., 182,000 units 837,200 Direct labor for July 71,160 Factory overhead for July 50,504 Goods finished during July (includes goods in process, July 1), 178,000 units — Work in process, July 31, 14,000 units, 20% completed