Cost of Production Report

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 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
Costs per equivalent unit:
		Direct Materials	Conversion
Total costs for October in Blending Department
Total equivalent units
Cost per equivalent unit
Costs charged to production:
	Direct Materials	Conversion	Total
Inventory in process, October 1
Costs incurred in October
Total costs accounted for by the Blending Department
Cost 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

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
Change in conversion cost per equivalent unit	DecreaseIncrease