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 ProcessFilling was as follows on January 1:

Work in ProcessFilling Department
(2,300 units, 40% completed):
	Direct materials (2,300 x $15.90)	$36,570
	Conversion (2,300 x 40% x $10.30)	9,476
		$46,046

The following costs were charged to Work in ProcessFilling during January:

Direct materials transferred from Reaction
	Department: 29,700 units at $15.60 a unit	$463,320
Direct labor		166,610
Factory overhead		160,082

During January, 29,400 units of specialty chemicals were completed. Work in ProcessFilling Department on January 31 was 2,600 units, 90% completed.

Required:

1. Prepare a cost of production report for the Filling Department for January. If an amount box does not require an entry, leave it blank. 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			fill in the blank 686e6e030fc9074_1
Received from Reaction Department			fill in the blank 686e6e030fc9074_2
Total units accounted for by the Filling Department			fill in the blank 686e6e030fc9074_3
Units to be assigned costs:
		Equivalent Units
	Whole Units	Direct Materials	Conversion
Inventory in process, January 1	fill in the blank 686e6e030fc9074_4	fill in the blank 686e6e030fc9074_5	fill in the blank 686e6e030fc9074_6
Started and completed in January	fill in the blank 686e6e030fc9074_7	fill in the blank 686e6e030fc9074_8	fill in the blank 686e6e030fc9074_9
Transferred to finished goods in January	fill in the blank 686e6e030fc9074_10	fill in the blank 686e6e030fc9074_11	fill in the blank 686e6e030fc9074_12
Inventory in process, January 31	fill in the blank 686e6e030fc9074_13	fill in the blank 686e6e030fc9074_14	fill in the blank 686e6e030fc9074_15
Total units to be assigned costs	fill in the blank 686e6e030fc9074_16	fill in the blank 686e6e030fc9074_17	fill in the blank 686e6e030fc9074_18
Cost Information
Costs per equivalent unit:
		Direct Materials	Conversion
Total costs for January in Filling Department		$fill in the blank 686e6e030fc9074_19	$fill in the blank 686e6e030fc9074_20
Total equivalent units		fill in the blank 686e6e030fc9074_21	fill in the blank 686e6e030fc9074_22
Cost per equivalent unit		$fill in the blank 686e6e030fc9074_23	$fill in the blank 686e6e030fc9074_24
Costs charged to production:
	Direct Materials	Conversion	Total
Inventory in process, January 1			$fill in the blank 686e6e030fc9074_25
Costs incurred in January			fill in the blank 686e6e030fc9074_26
Total costs accounted for by the Filling Department			$fill in the blank 686e6e030fc9074_27
Cost allocated to completed and partially completed units:
Inventory in process, January 1 balance			$fill in the blank 686e6e030fc9074_28
To complete inventory in process, January 1	$fill in the blank 686e6e030fc9074_29	$fill in the blank 686e6e030fc9074_30	fill in the blank 686e6e030fc9074_31
Cost of completed January 1 work in process			$fill in the blank 686e6e030fc9074_32
Started and completed in January	fill in the blank 686e6e030fc9074_33	fill in the blank 686e6e030fc9074_34	fill in the blank 686e6e030fc9074_35
Transferred to finished goods in January			$fill in the blank 686e6e030fc9074_36
Inventory in process, January 31	fill in the blank 686e6e030fc9074_37	fill in the blank 686e6e030fc9074_38	fill in the blank 686e6e030fc9074_39
Total costs assigned by the Filling Department			$fill in the blank 686e6e030fc9074_40

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)	Factory Overhead-Filling DepartmentFinished GoodsMaterialsWork in Process-Filling DepartmentWork in Process-Reaction Department	- Select -	- Select -
	Factory Overhead-Filling DepartmentFinished GoodsMaterialsWork in Process-Filling DepartmentWork in Process-Reaction Department	- Select -	- Select -
(2)	Factory Overhead-Filling DepartmentFinished GoodsMaterialsWork in Process-Filling DepartmentWork in Process-Reaction Department	- Select -	- Select -
	Factory Overhead-Filling DepartmentFinished GoodsMaterialsWork in Process-Filling DepartmentWork in Process-Reaction Department	- Select -	- Select -

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	DecreaseIncrease	$fill in the blank 1d07e6f9dfc500a_2
Change in conversion cost per equivalent unit	DecreaseIncrease	fill in the blank 1d07e6f9dfc500a_4

4. The cost of production report may be used as the basis for allocating product costs between

Work in ProcessDirect Materials

and

Cost of Goods SoldFinished Goods

. 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.