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 Pilling departments, emerging as finished chemicals 7 The balance in the account Work in Procenilling was as follows on January 11 Work in Processing Department (2.400 units, 60% completed): Direct matenal (2,400 x $16,5) $39,600 Conversion (2.400 x 60% $10.6) 15,552 $55,152 The following costs were charged to Work in Process --Filling during January Direct materials transferred from Reaction Department: 31,000 units at $16.3 a unit $505,300 Direct labor 170,230 Factory overhead 163,547 During January 30,700 units of specialty chemicals were completed. Work in Process Pilling 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, entero. If required, round your cost per equivalent unit answers to two decimal places Dover Chemical Company Cost of Production Report-Filling Department For the Month Ended January 31 Previous Ne 1. Prepare a cost of production report for the Filling Department for January, If an amount is zero, enter". If required, round your cost per equivalent unit answers 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 1 Receved from Reaction Department Total units accounted for by the Filling Department Units to be assigned to 2.400 31000 Whole Units Equivalent units Direct Materials Conversion 2.400 Inventory in process, January 1 Started and completed in January Transferred to finished goods in January Inventory in proces, January 31 Total units to be assigned costs Cost Informatie Cost per equivalent unit Direct Materials Conversion Previous NO Inventory in process, January 31 Total units to be assigned costs Cost Information Cost per equivalent unit: Direct Materials Conversion Total costs for January in Filling Department Total equivalent units Cost per equivalent unit Costs assigned to production: Total Direct Materials Conversion si Inventory in process, January 1 Costs incurred in January Total costs acounted for by the Filling Department Costs allocated to completed and partially completed units! Inventory in process, January balance To complete inventory in process, January 1 Cast of completed January 1 work in process $ Started and completed in January Transferred to finished goods in January Inventory in processuan 1 Total costs assigned by the filling Department COSTO complete w proces Started and completed in January Transferred to finished goods in January Inventory in process, January 31 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 Filling to Finished Goods (2) 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 Increase or Decrease Amount Change in direct materials cost per equivalent unit Decre Change in conversion cost per equivalent unit 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 a locating product costs between Dret Materials and cost of Goods Sold 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 (5) can be studied carefully and any significant differences investigated. Preous Next