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:

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:

Question Content Area

1. Prepare a cost of production report and identify the missing amounts for Work in ProcessBlending Department. If an amount box does not require an entry, leave it blank. 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:		Number of Units
Inventory in process, October 1		fill in the blank b2bc37fc9034075_1
Received from materials storeroom		fill in the blank b2bc37fc9034075_2
Total units accounted for by the Blending Department		fill in the blank b2bc37fc9034075_3

Units to be assigned costs:	Equivalent Units
	Whole Units	Direct Materials	Conversion
Inventory in process, October 1	fill in the blank b2bc37fc9034075_4	fill in the blank b2bc37fc9034075_5	fill in the blank b2bc37fc9034075_6
Started and completed in October	fill in the blank b2bc37fc9034075_7	fill in the blank b2bc37fc9034075_8	fill in the blank b2bc37fc9034075_9
Transferred to Molding Department in October-	fill in the blank b2bc37fc9034075_10	fill in the blank b2bc37fc9034075_11	fill in the blank b2bc37fc9034075_12
Inventory in process, October 31	fill in the blank b2bc37fc9034075_13	fill in the blank b2bc37fc9034075_14	fill in the blank b2bc37fc9034075_15
Total units to be assigned costs	fill in the blank b2bc37fc9034075_16	fill in the blank b2bc37fc9034075_17	fill in the blank b2bc37fc9034075_18

Cost Information

Costs per equivalent unit:	Direct Materials	Conversion
Total costs for October in Blending Department	$fill in the blank b2bc37fc9034075_19	$fill in the blank b2bc37fc9034075_20
Total equivalent units	fill in the blank b2bc37fc9034075_21	fill in the blank b2bc37fc9034075_22
Cost per equivalent unit	$fill in the blank b2bc37fc9034075_23	$fill in the blank b2bc37fc9034075_24
Costs charged to production:
	Direct Materials	Conversion	Total
Inventory in process, October 1			$fill in the blank b2bc37fc9034075_25
Costs incurred in October			fill in the blank b2bc37fc9034075_26
Total costs accounted for by the Blending Department			$fill in the blank b2bc37fc9034075_27
Cost allocated to completed and partially completed units:
Inventory in process, October 1 balance			$fill in the blank b2bc37fc9034075_28
To complete inventory in process, October 1		$fill in the blank b2bc37fc9034075_29	fill in the blank b2bc37fc9034075_30
Cost of completed October 1 work in process			$fill in the blank b2bc37fc9034075_31
Started and completed in October	$fill in the blank b2bc37fc9034075_32	fill in the blank b2bc37fc9034075_33	fill in the blank b2bc37fc9034075_34
Transferred to Molding Department in October			$fill in the blank b2bc37fc9034075_35
Inventory in process, October 31	fill in the blank b2bc37fc9034075_36	fill in the blank b2bc37fc9034075_37	fill in the blank b2bc37fc9034075_38
Total costs assigned by the Blending Department			$fill in the blank b2bc37fc9034075_39

Question Content Area

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	DecreaseIncrease	$fill in the blank 239becfacfc7079_2
Change in conversion cost per equivalent unit	DecreaseIncrease	$fill in the blank 239becfacfc7079_4

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