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
(5,600 units, 70% completed):
	Direct materials (5,600 x $15.60)	$87,360
	Conversion (5,600 x 70% x $10.20)	39,984
		$127,344

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

Direct materials transferred from Reaction
	Department: 72,200 units at $15.40 a unit	$1,111,880
Direct labor		375,710
Factory overhead		360,970

During January, 71,600 units of specialty chemicals were completed. Work in ProcessFilling Department on January 31 was 6,200 units, 40% 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 answers to two decimal places.

2. Journalize the entries for (1) costs transferred from Reaction to Filling and (2) the cost transferred from Filling to Finished Goods. If an amount box does not require an entry, leave it blank.

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.

4. Discuss the uses of the cost of production report and the results of part (3).

Fill-ins include the following for this assignment.