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 ProcessFilling was as follows on January 1: Work in ProcessFilling Department (5,600 units, 80% completed): Line Item Description Amount Direct materials (5,600 $18.20) $101,920 Conversion (5,600 80% $11.80) 52,864 Total $154,784 The following costs were charged to Work in ProcessFilling during January: Direct materials transferred from Reaction Line Item Description Amount Department: 72,200 units at $17.90 a unit $1,292,380 Direct labor 448,630 Factory overhead 431,040 During January, 71,600 units of specialty chemicals were completed. Work in ProcessFilling Department on January 31 was 6,200 units, 90% completed. Required: Question Content Area 1. Prepare a cost of production report for the Filling Department for January. If an amount is zero, enter "0". If required, round your cost per equivalent unit answers to the nearest cent. Dover Chemical Company Cost of Production ReportFilling Department For the Month Ended January 31 Units Whole Units Equivalent Units Direct Materials Equivalent Units Conversion Units charged to production: Inventory in process, January 1 fill in the blank 1 of 40 Received from Reaction Department fill in the blank 2 of 40 Total units accounted for by the Filling Department fill in the blank 3 of 40 Costs charged to production: Inventory in process, January 1 fill in the blank 4 of 40 fill in the blank 5 of 40 0 fill in the blank 6 of 40 Started and completed in January fill in the blank 7 of 40 fill in the blank 8 of 40 fill in the blank 9 of 40 Transferred to finished goods in January fill in the blank 10 of 40 fill in the blank 11 of 40 fill in the blank 12 of 40 Inventory in process, January 31 fill in the blank 13 of 40 fill in the blank 14 of 40 fill in the blank 15 of 40 Total units to be assigned costs fill in the blank 16 of 40 fill in the blank 17 of 40 fill in the blank 18 of 40 Costs Costs Direct Materials Conversion Total Cost per equivalent unit: Total costs for January in Filling Department fill in the blank 19 of 40$ fill in the blank 20 of 40$ Total equivalent units fill in the blank 21 of 40 fill in the blank 22 of 40 Cost per equivalent unit fill in the blank 23 of 40$ fill in the blank 24 of 40$ Costs assigned to production: Inventory in process, January 1 fill in the blank 25 of 40$ Costs incurred in January fill in the blank 26 of 40 Total costs accounted for by the Filling Department fill in the blank 27 of 40$ Costs allocated to completed and partially completed units: Inventory in process, January 1 balance fill in the blank 28 of 40$ To complete inventory in process, January 1 fill in the blank 29 of 40$ 0 fill in the blank 30 of 40$ fill in the blank 31 of 40 Cost of completed January 1 work in process fill in the blank 32 of 40$ Started and completed in January fill in the blank 33 of 40 fill in the blank 34 of 40 fill in the blank 35 of 40 Transferred to finished goods in January fill in the blank 36 of 40$ Inventory in process, January 31 fill in the blank 37 of 40 fill in the blank 38 of 40 fill in the blank 39 of 40 Total costs assigned by the Filling Department fill in the blank 40 of 40$ Feedback Area Feedback 1. Calculate equivalent units for materials and conversion costs. Calculate the cost per equivalent unit for materials and conversion costs. Calculate the costs assigned to the beginning inventory, the units started and completed, and the ending inventory. Question Content Area 2. Journalize the entries for (1) costs transferred from Reaction to Filling and (2) the cost transferred from Filling to Finished Goods. If an amount box does not require an entry, leave it blank. TransactionAccountDebitCredit (1) Work in Process-Filling Department Work in Process-Filling Department Work in Process-Filling Department Work in Process-Reaction Department Work in Process-Reaction Department Work in Process-Reaction Department (2) Finished Goods Finished Goods Finished Goods Work in Process-Filling Department Work in Process-Filling Department Work in Process-Filling Department Feedback Area Feedback 2. Remember that there are three types of inventory; materials, work in process, and finished goods. What costs are captured in the work in process account? Are these units 100% complete or are they being transferred to another department? Question Content Area 3. Determine the increase or decrease in the cost per equivalent unit from December to January for direct materials and conversion costs. If required, round your answers to two decimal places. Line Item Description Increase or Decrease Amount Change in direct materials cost per equivalent unit fill in the blank 1 of 4 Decrease fill in the blank 2 of 4$ Change in conversion cost per equivalent unit fill in the blank 3 of 4 Increase fill in the blank 4 of 4$ 4. Discuss the uses of the cost of production report and the results of part (3). The cost of production report may be used as the basis for allocating product costs between Work in Process and Finished Goods . The report can also be used to control costs by holding each department head responsible for the units entering production and the costs incurred in the department. Any differences in unit product costs from one month to another, such as those in part (3), can be studied carefully and any significant differences investigated.