Cost of Production Report

Venus 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 March 31, 2016:

ACCOUNT Work in ProcessBlending Department							ACCOUNT NO.
Date		Item	Debit		Credit		Balance
							Debit		Credit
Mar.	1	Bal., 4,500 units, 2/5 completed					9,630
	31	Direct materials, 180,000 units	360,000				369,630
	31	Direct labor	72,800				442,430
	31	Factory overhead	18,200				460,630
	31	Goods transferred, 181,000 units			?
	31	Bal., ? units, 4/5 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". When computing cost per equivalent units, round to two decimal places.

White Diamond Flour CompanyGeneral Ledger

	ASSETS
110	Cash
121	Accounts Receivable
125	Notes Receivable
126	Interest Receivable
131	Materials
141	Work in Process-Milling Department
142	Work in Process-Sifting Department
143	Work in Process-Packaging Department
151	Factory Overhead-Milling Department
152	Factory Overhead-Sifting Department
153	Factory Overhead-Packaging Department
161	Finished Goods
171	Supplies
172	Prepaid Insurance
173	Prepaid Expenses
181	Land
191	Factory
192	Accumulated Depreciation-Factory

	LIABILITIES
210	Accounts Payable
221	Utilities Payable
231	Notes Payable
236	Interest Payable
251	Wages Payable

	EQUITY
311	Common Stock
340	Retained Earnings
351	Dividends
390	Income Summary

	REVENUE
410	Sales
610	Interest Revenue

EXPENSES

510

Cost of Goods Sold

520

Wages Expense

531

Selling Expenses

532

Insurance Expense

533

Utilities Expense

534

Supplies Expense

540

Administrative Expenses

561

Depreciation Expense-Factory

590

Miscellaneous Expense

710

Interest Expense

Required:

1.

(a)

Enter the balance as of April 1, 2016, in a four-column account for Work in Process-Filling. Record the debits and the credits in the account for April.

(b)

Construct a cost of production report, and present computations for determining

i.	equivalent units of production for materials and conversion.
ii.	costs per equivalent unit.*
iii.	cost of goods finished, differentiating between units started in the prior period and units started and finished in April.*
iv.	work in process inventory.*
*	If an amount is zero, enter "0". Round your cost per unit answers to the nearest cent and final answers to the nearest dollar amount.

2.

(a)	Provide the same information for May by recording the May transactions in the four-column work in process account.
(b)	Construct a cost of production report, and present the May computations (i through iv) listed in part 1(b).

3.

Comment on the change in costs per equivalent unit for March through May for direct materials and conversion costs.

1(b).

Construct a cost of production report, and present computations for determining

i.	equivalent units of production for materials and conversion.
ii.	costs per equivalent unit.*
iii.	cost of goods finished, differentiating between units started in the prior period and units started and finished in April.*
iv.	work in process inventory.*
*	If an amount is zero, enter "0". Round your cost per unit answers to the nearest cent and final answers to the nearest dollar amount.

2(b).

Construct a cost of production report, and present computations for determining

i.	equivalent units of production for materials and conversion
ii.	costs per equivalent unit*
iii.	cost of goods finished, differentiating between units started in the prior period and units started and finished in April*
iv.	work in process inventory.*
*	If an amount is zero, enter "0". Round your cost per unit answers to the nearest cent and final answers to the nearest dollar amount.

Venus Chocolate Company For the Month Ended March 31, 2016 Unit Information Units charged to production: Inventory in process, March 1 Received from materials storeroom Total units accounted for by the Blending Department Units to be assigned costs: 4,500 180,000 184,500 Equivalent Units Whole Materials Units Direct Motercal Conversion Inventory in process, March 1 Started and completed in March Transferred to Molding Department in March Inventory in process, March 31 Total units to be assigned costs tory in process, March 31