Question
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
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, 20% completed): | ||
Direct materials (2,300 x $10.40) | $23,920 | |
Conversion (2,300 x 20% x $6.70) | 3,082 | |
$27,002 |
The following costs were charged to Work in ProcessFilling during January:
Direct materials transferred from Reaction | ||
Department: 29,700 units at $10.20 a unit | $302,940 | |
Direct labor | 106,410 | |
Factory overhead | 102,246 |
During January, 29,400 units of specialty chemicals were completed. Work in ProcessFilling Department on January 31 was 2,600 units, 50% 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.
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 | |||
Received from Reaction Department | |||
Total units accounted for by the Filling Department | |||
Units to be assigned costs: | |||
Equivalent Units | |||
Whole Units | Direct Materials | Conversion | |
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 | |||
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: | |||
Direct Materials | Conversion | Total | |
Inventory in process, January 1 | $ | ||
Costs incurred in January | |||
Total costs accounted for by the Filling Department | $ | ||
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 | $ |
2. Journalize the entries for (1) costs transferred from Reaction to Filling and (2) the cost transferred from Filling to Finished Goods.
(1) |
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(2) |
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3. Determine the increase or decrease in the cost per equivalent unit from December to January for direct materials and conversion costs.
Increase or Decrease | Amount | |
Change in direct materials cost per equivalent unit | Decrease or Increase | $ |
Change in conversion cost per equivalent unit | Decrease or Increase | $ |
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