Equivalent Units and Related Costs; Cost of Production Report; Entries 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 (2,700 units, B0% completed): Direct materials (2,700 x $18.10) $48,870 Conversion (2,700 x 80% x $11.70) 25,272 $74,142 The following costs were charged to Work in Process-Filing during January Direct materials transferred from Reaction Department: 34,800 units at $17.80 a unit $619,440 Direct labor 205,260 Factory overhead 197,220 During January, 34,500 units of specialty chemicals were completed. Work in Process-Filing Department on January 31 was 3,000 units, 40% completed Required: 1. Prepare a cost of production report for the Filing Department for January. If an amount is zero, enter "o". if required, round your cost per equivalent unit answm to two decimal places Dover Chemical Company Cost of Production Report-Filling Department For the Month Ended January 31 Unik Information Units charged to production Factory overhead 197,220 During January, 34,500 units of specialty chemicals were completed. Work in Process-Filing Department on January 31 was 3,000 units, 40% completed Required: 1. Prepare a cost of production report for the Filling Department for January. If an amount is zero, enter"O". If required, round your cost per equivalent unit to two decimal places Dover Chemical Company Cost of Production Report-Filling Department For the Month Ended January 31 Unit Information Units charged to production Inventory in process, January Received from Reaction Department Total units accounted for by the Filing Department Units to be assigned costs: 45,870 344800 83,670 Whole Units Equivalent Units Direct Materials Conversion 14390 14,370 14370 Inventory in process, January 1 Started and completed in January Transferred to finished goods in January Inventory in process, January 31 Total units to be assigned costs 150 14,370 3,000 000 100,740 32,100 Cost Information Cost per equivalent units Direct Cost Information Cost per equivalent unit: Direct Materials Conversion Total Total costs for January in Filling Department Total equivalent units Cost per equivalent unit Costs assigned to production: Direct Materials Conversion Inventory in process, January 1 Costs incurred in January Total costs accounted for by the Filling Department Costs allocated to completed and partially completed units: Inventory in process, January 1 balance To complete inventory in process, January 1 Cost of completed January 1 work in process Started and completed in January Transferred to finished goods in January Inventory in process, January 31 o Total costs assigned by the Filling Department 2. Journalize the entries for (1) costs transferred from Reaction to Filling and (2) the cost transferred from Filing to Finished Goods. If an amount box Poes not require an entry leave it blank (1) (2) 88 3. Determine the increase or decrease in the cool per equivalent int from December to January for direct materials and conversion costs. It required, round your answers to two decimal places Increase or Decrease Amount Change in direct materials cost per equivalent unit Change in conversion cost per equivalent unit 4. Discuss the use 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 and 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