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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

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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: Work in Process - Filing Department (3,400 units, 60% completed) Direct Materials (3,400 x $9.58) $32,572 Conversion (3,400 x $3.90) $ 7,956 TOTAL $40,528 The following costs were charged to Work in Process Filling during January: Direct materials transferred from Reaction $496,850 Filling Department: 52,300 units at $9.50 a unit Direct Labor Factory Overhead $101,560 $95,166 *Conversion Costs - DL + FOH During January, 53,000 units of specialty chemicals were completed. Work in Process-Filling Department on January 31 was 2,700 units, 30% completed. With the information above, please complete a Cost of Production Report. Criteria Report Heading The Company name, report, department and time period should all be listed. Step 1 - Units to be assigned costs Whole units and correct units to be assigned costs, should be the same. Both must be complete within the template for full credit in this step. Step 2 - Equivalent Units Equivalent units with respect to Direct Material and Conversion must be correct. Step 3 - Cost per equivalent unit Costs must be calculated and correct unit cost with respect to Direct Materials and Conversion. Step 4 - Cost Allocation Equivalent unit cost per unit, must be allocated to the equivalent units, as calculated. EQUIVALENT UNITS Direct Material Conversion WHOLE UNITS UNITS Units charged to production: Inventory in process, January 1 Received from Reaction Department Total Units account for by the Filing Department Units to be assigned costs: Inventory in process, January 1 (60% completed) Started and completed in January Transferred to finished goods in January Inventory in process, January 31 (30% completed) Total units to be assigned costs COSTS Conversion Total COSTS Direct Material Cost per equivalent unit: Total costs for January in Filing Departments Total equivalent units Cost per equivalent unit: $ $ $ Costs assigned to production: Inventory in process, January 1 Costs incurred in January Total costs accounted for by the Filing Department $ Costs allocated to completed and partially completed units: Inventory in process, January 1 balance To complete inventory in process, January 1 Started and completed in January Transferred to finished goods in January Inventory in process, January 31 Total costs assigned by the Filing Department $ $ $ $ $ $ $

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