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$$Filling Department

$(5,900$ units, $70\%$ completed$)$:

Line Item Description Amount

Direct materials $(5,900\backslash$times $$14\mathrm{.}60)$ $$86,140$

Conversion $(5,900\backslash$times $70\%\backslash$times $$9\mathrm{.}50)39,235$

Total $$125,375$

The following costs were charged to Work in Process$$Filling during January:

Direct materials transferred from Reaction

Line Item Description Amount

Department: $76,100$ units at $$14\mathrm{.}40$ a unit $$1,095,840$

Direct labor $363,170$

Factory overhead $348,937$

During January, $75,400$ units of specialty chemicals were completed. Work in Process$$Filling Department on January $31$ was $6,600$ units, $10\%$ completed.

Required:

Question Content Area

$1.$ 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 the nearest cent.

Dover Chemical Company

Cost of Production Report$$Filling Department

For the Month Ended January $31$

Units Whole Units Equivalent Units

Direct Materials Equivalent Units

Conversion

Units charged to production:

Inventory in process, January $1$ fill in the blank $1$ of $40$

$5,900$

Received from Reaction Department fill in the blank $2$ of $40$

$76,100$

Total units accounted for by the Filling Department fill in the blank $3$ of $40$

$82,000$

Costs charged to production:

Inventory in process, January $1$ fill in the blank $4$ of $40$

$5,900$

fill in the blank $5$ of $40$

$0$

fill in the blank $6$ of $40$

$1,770$

Started and completed in January fill in the blank $7$ of $40$

$69,500$

fill in the blank $8$ of $40$

$69,500$

fill in the blank $9$ of $40$

$69,500$

Transferred to finished goods in January fill in the blank $10$ of $40$

$75,400$

fill in the blank $11$ of $40$

$69,500$

fill in the blank $12$ of $40$

$71,270$

Inventory in process, January $31$ fill in the blank $13$ of $40$

$6,600$

fill in the blank $14$ of $40$

$6,600$

fill in the blank $15$ of $40$

$660$

Total units to be assigned costs fill in the blank $16$ of $40$

$82,000$

fill in the blank $17$ of $40$

$76,100$

fill in the blank $18$ of $40$

$71,930$

Costs

Costs Direct Materials Conversion Total

Cost per equivalent unit:

Total costs for January in Filling Department fill in the blank $19$ of $40$$

$1,095,840$

fill in the blank $20$ of $40$$

$712,107$

Total equivalent units fill in the blank $21$ of $40$

$76,100$

fill in the blank $22$ of $40$

$71,930$

Cost per equivalent unit fill in the blank $23$ of $40$$

$14\mathrm{.}4$

fill in the blank $24$ of $40$$

$9\mathrm{.}9$

Costs assigned to production:

Inventory in process, January $1$ fill in the blank $25$ of $40$$

$125,375$

Costs incurred in January fill in the blank $26$ of $40$

$1,807,947$

Total costs accounted for by the Filling Department fill in the blank $27$ of $40$$

$1,933,322$

Costs allocated to completed and partially completed units:

Inventory in process, January $1$ balance fill in the blank $28$ of $40$$

$125,375$

To complete inventory in process, January $1$ fill in the blank $29$ of $40$$

$0$

fill in the blank $30$ of $40$$

$1,770$

fill in the blank $31$ of $40$

Cost of completed January $1$ work in process fill in the blank $32$ of $40$$

Started and completed in January fill in the blank $33$ of $40$

fill in the blank $34$ of $40$

fill in the blank $35$ of $40$

Transferred to finished goods in January fill in the blank $36$ of $40$$

Inventory in process, January $31$ fill in the blank $37$ of $40$

fill in the blank $38$ of $40$

fill in the blank $39$ of $40$

Total costs assigned by the Filling Department fill in the blank $40$ of $40$$

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Feedback

$1.$ Calculate equivalent units for materials and conversion costs. Calculate the cost per equivalent unit for materials and conversion costs. Calculate the costs assigned to the beginning inventory, the units started and completed, and the ending inventory.

Question Content Area

$2.$ 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.

TransactionAccountDebitCredit

$(1)$

Work in Process$-$Filling Department

$1,095,840$

$0$

Work in Process$-$Reaction Department

$0$

$1,095,840$

$(2)$

Finished Goods

$0$

Work in Process$-$Filling Department

$0$

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Feedback

$2.$ Remember that there are three types of inventory; materials, work in process, and finished goods. What costs are captured in the work in process account? Are these units $100\%$ complete or are they being transferred to another department?

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$3.$