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 Disting 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 11 Work in Process-Filling Department (3,400 units, 60% completed): Direct materials (3,400 x $9.58) Conversion (3,400 x 60% x $3.90) $32,572 7,956 540,528 The following costs were charged to Work in Process-Filling during January Direct materials transferred from Reaction - Department: 52,300 units at $9.50 a unit Direct labor I Factory overhead $496,850 101,560 95,166 During January, 53,000 units of specialty chemicals were completed. Work in Process-Filling Department on January 31 was 2,700 units, 30% completed. Required: 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 arowers to the nearest cent Dover Chemical Company Cost of Production Report-Filling Department For the Month Ended January 31 Units Equivalent Units Equivalent Units Whole Units Direct Materials Conversion Units charged to production: Units Inventory in process, January 1 Received from Reaction Department Total units accounted for by the Filling Department Units to be assigned costs: 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 Costs Cost per equivalent unit: Total costs for January in Filling Department Total equivalent units Cost per equivalent unit Costs charged to production: Inventory in process, January 1 Costs incurred in January Total costs accounted for by the Filling Department Whole Units Equivalent Units Equivalent Units Direct Materials Conversion I Costs Direct Materials Conversion Total 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 Total costs assigned by the Filling Department Check My Work 000 000 2. Journalize the entries for (1) costs transferred from Reaction to Filling and (2) the costs transferred from Filling to Finished Goods. If an amount box does not require an entry, leave it blank (1) Work in Process Filling Department Work in Process-Reaction Department (2) Einished Goods Work in Process-Filling Department 88 88 Feed Accounting numeric field 3. Determine the increase or decrease in the cost per equivalent unit from December to January for direct materials and conversion costs. If requared, 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 uses of the cost of production report and the results of part (3) Decrease Decrease and finished Goods The report can also be used to control costs by The cost of production report may be used as the basis for allocating product costs between Work in Precess 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 part (3), can be studied carefully and any significant differences investigated.