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 2,300 29,700 32,000 Total units accounted for by the Filling Department Units to be assigned costs: Whole Units Equivalent Units Direct Materials Conversion 0 1,840 2,300 27,100 27,100 27.100 Inventory in process, January 1 Started and completed in January Transferred to finished goods in January Inventory in process, January 31 29,400 27,100 28,940 2,600 2,600 1,300 Total units to be assigned costs 32,000 29,700 30,240 Cost per equivalent unit: Conversion Direct Materials 302,940 208,656 29,700 30,240 Total costs for January in Filling Department Total equivalent units Cost per equivalent unit Costs assigned to production: 10.20 6.90 Direct Materials Conversion Total Inventory in process, January 1 27,002 511,596 538,598 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 27,002 26,520 X 26,520 X Cost of completed January 1 work in process 302,940 x Started and completed in January 199,686 X 8,970 208,656 X 208,656 X Transferred to finished goods in January Inventory in process, January 31 199,686 8,970 208,656 X Total costs assigned by the Filling Department 538,598 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 Decrease 6.90 x $ Change in conversion cost per equivalent unit Increase 0.20