Cost of production report OBJ. 2, 4 Bavarian Chocolate Company processes chocolate into candy bars. The process begins by placing direct materials (raw chocolate, milk, and sugar) into the Blending Department.

All materials are placed into production at the beginning of the blending process. After blending, the milk chocolate is then transferred to the Molding Department, where the milk chocolate is formed into candy bars. The following is a partial work in process account of the Blending Department at October 31, 2016:

ACCOUNT NO.

Date Item Debit Credit Oct. 1 31 31 31 31 31 Bal., 2,300 units, completed Direct materials, 26,000 units Direct labor Factory overhead Goods transferred, 25,700 units Bal., ? units, completed 46,368 475,368 575,928 624,408

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ACCOUNT Work in Process—Blending Department Debit Credit 429,000 100,560 48,480

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Balance 5 3 5 1 Instructions 1. Prepare a cost of production report, and identify the missing amounts for Work in Process—Blending Department.

2. Assuming that the October 1 work in process inventory includes direct materials of

$38,295, determine the increase or decrease in the cost per equivalent unit for direct materials and conversion between September and October.