1. avarian 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:

   ACCOUNT Work in ProcessBlending Department					ACCOUNT NO.
   Date		Item	Debit		Credit	Balance
   						Debit		Credit
   Oct.	1	Bal., 2,300 units, 3/5 completed				46,368
   	31	Direct materials, 26,000 units	429,000			475,368
   	31	Direct labor	100,560			575,928
   	31	Factory overhead	48,480			624,408
   	31	Goods transferred, 25,700 units			?
   	31	Bal., ? units, 1/5 completed				?

   Required:

   1. Prepare a cost of production report, and identify the missing amounts for Work in ProcessBlending Department. If an amount is zero enter "0". If required, round your cost per equivalent unit answers to the nearest cent.

   Bavarian Chocolate Company
   Cost of Production Report-Blending Department
   For the Month Ended October 31
   Unit Information
   Units charged to production:
   Inventory in process, October 1
   Received from materials storeroom
   Total units accounted for by the Blending Department
   Units to be assigned costs:
   		Equivalent Units
   	Whole Units	Direct Materials	Conversion
   Inventory in process, October 1
   Started and completed in October
   Transferred to Molding Department in October
   Inventory in process, October 31
   Total units to be assigned costs
   Cost Information
   Cost per equivalent unit:
   		Direct Materials	Conversion
   Total costs for October in Blending Department		$	$
   Total equivalent units
   Cost per equivalent unit		$	$
   Costs assigned to production:
   	Direct Materials	Conversion	Total
   Inventory in process, October 1			$
   Costs incurred in October
   Total costs accounted for by the Blending Department			$
   Costs allocated to completed and partially completed units:
   Inventory in process, October 1 balance			$
   To complete inventory in process, October 1		$
   Cost of completed October 1 work in process			$
   Started and completed in October	$
   Transferred to Molding Department in October			$
   Inventory in process, October 31
   Total costs assigned by the 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. If required, round your answers to two decimal places.

   	Increase or Decrease	Amount
   Change in direct materials cost per equivalent unit		$
   Change in conversion cost per equivalent unit		$

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