Dover Chemical Company manufactures specialty chemicals by a series of three processes, all materials being introduced in the distilling deptartment. From the distilling deptartment, the materials pass through the reaction and filling deptartments, emerging as finished chemicals.

The balance in the account Work in Progress- Filling was as follows on January 1,2016:

Work in Progress- Filling Deptartment

(3400 units, 60% completed):

Direct materials (3400 x $9.58)

Conversion (3400 x 60% x $3.90)

$32572

$7956

40528

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

Direct materials transfered from Reaction

Department:52300 units at $9.50 a unit

Direct labor

Factory overhead

496850

101560

95166

During January, 53000 units of specialty chemicals were completed. Work in Process- Filling Department on January 31 was 2700 units, 30% completed.

1. Prepare a cost of production report for the filling deptartment 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.