Cost of Production Report

Dover Chemical Company manufactures specialty chemicals by a series of three processes, all materials being introduced in the Distilling Department. From the Distilling Department, the materials pass through the Reaction and Filling departments, emerging as finished chemicals.

The balance in the account Work in Process Filling was as follows on January 1, 2014:

Work in Process Filling Department ( 3,400 units, 60% completed):

Direct materials ( 3,400 $ 9.58) = $ 32,572

Conversion ( 3,400 60% $ 3.90) = 7,956

Total $ 40,528

The following costs were charged to Work in Process Filling during January.

Direct materials transferred from Reaction Department: 52,300 units at $ 9.50 a unit = $ 496,850

Direct labor = 101,560

Factory overhead = 95,166

During January, 53,000 units of specialty chemicals were completed. Work in Process Filling Department on January 31 was 2,700 units, 30% completed.

Instructions

Use the attached excel file to:

1. Prepare a cost of production report for the Filling Department for January.

2. Journalize the entries for costs transferred from Reaction to Filling and the costs transferred from Filling to Finished Goods.

3. Determine the increase or decrease in the cost per equivalent unit from December to January for direct materials and conversion costs.

4. Discuss the uses of the cost of production report and the results of part (3).

Module case study-b (1) [Compatibility Mode]-Excel HOMEINSERT PAGE LAYOUT FORMULAS DATA REVIEW VEW ADD-INSckBooks Sign in A Cut AutoSum A Wrap Text Copy Fill Sort & Find & Filter Select Paste B 1 u . A- $, % , 10848 Conditional Format as Ce Insert Delete Format Formatting. Table" Styles Merge & Center- Format Painter Clear Clipboard Font Alignment Number Styles Cells Editing L21 A B F G J K 14 1 15 16 DOVER CHEMICAL COMPANY Cost of Production Report Filling Department For the Month Ended January 31, 2014 UNITS Equivalent Units 20 Whole Units Direct Materials Conversion Units charged to production Inventory in process, January1 Received from Reaction Department Total units accounted for by the Filling Department 24 25 26 27 28 29 30 Units to be assigned cost complete) Inventory in process, January 1 Started and completed in January Transferred to finished goods in Janu Inventory in process, January 31 ( Total units to be assigned cost complete) 32 COSTS Costs Conversion 35 Direct Materials Total Costs per equivalent unit Total costs for January in Filling Department Total equivalent units Pr. 18(3)-3B READY + 100% 3:09 PM 2/9/2016