Dover Chemical Company manufactures specialty chemical 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 separtments, emerging as finished chemicals,

The balance in the account Work in Process-Filling was as follows

Work in Process- Filling Department

(3,400 units, 60% completed):

Direct Materials $32,520

Conversion (3,400x60%x3.90) 7956

40520

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

Direct Materias transferres from Reaction

Department: 52,300 units at 9.50 a unit $ 496,850

Direct Labor 101,560

Factory overhead 95,166

During January 53,00 units of specialty chemicals were completed. Work in Process-Filling Department on January 31 was 2,700 units 30% completed

Instructions

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

2- Journalize 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 fro direct materials and conversion costs

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