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 $17.20)	$96,320
	Conversion (5,600 x 70% x $11.20)	43,904
		$140,224

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

Direct materials transferred from Reaction
	Department: 72,200 units at $16.90 a unit	$1,220,180
Direct labor		411,510
Factory overhead		395,382

During January, 71,600 units of specialty chemicals were completed. Work in ProcessFilling Department on January 31 was 6,200 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			fill in the blank 439e04064facfc2_1
Received from Reaction Department			fill in the blank 439e04064facfc2_2
Total units accounted for by the Filling Department			fill in the blank 439e04064facfc2_3
Units to be assigned costs:
		Equivalent Units
	Whole Units	Direct Materials	Conversion
Inventory in process, January 1	fill in the blank 439e04064facfc2_4	fill in the blank 439e04064facfc2_5	fill in the blank 439e04064facfc2_6
Started and completed in January	fill in the blank 439e04064facfc2_7	fill in the blank 439e04064facfc2_8	fill in the blank 439e04064facfc2_9
Transferred to finished goods in January	fill in the blank 439e04064facfc2_10	fill in the blank 439e04064facfc2_11	fill in the blank 439e04064facfc2_12
Inventory in process, January 31	fill in the blank 439e04064facfc2_13	fill in the blank 439e04064facfc2_14	fill in the blank 439e04064facfc2_15
Total units to be assigned costs	fill in the blank 439e04064facfc2_16	fill in the blank 439e04064facfc2_17	fill in the blank 439e04064facfc2_18
Cost Information
Costs per equivalent unit:
		Direct Materials	Conversion
Total costs for January in Filling Department		$fill in the blank 439e04064facfc2_19	$fill in the blank 439e04064facfc2_20
Total equivalent units		fill in the blank 439e04064facfc2_21	fill in the blank 439e04064facfc2_22
Cost per equivalent unit		$fill in the blank 439e04064facfc2_23	$fill in the blank 439e04064facfc2_24
Costs charged to production:
	Direct Materials	Conversion	Total
Inventory in process, January 1			$fill in the blank 439e04064facfc2_25
Costs incurred in January			fill in the blank 439e04064facfc2_26
Total costs accounted for by the Filling Department			$fill in the blank 439e04064facfc2_27
Cost allocated to completed and partially completed units:
Inventory in process, January 1 balance			$fill in the blank 439e04064facfc2_28
To complete inventory in process, January 1	$fill in the blank 439e04064facfc2_29	$fill in the blank 439e04064facfc2_30	fill in the blank 439e04064facfc2_31
Cost of completed January 1 work in process			$fill in the blank 439e04064facfc2_32
Started and completed in January	fill in the blank 439e04064facfc2_33	fill in the blank 439e04064facfc2_34	fill in the blank 439e04064facfc2_35
Transferred to finished goods in January			$fill in the blank 439e04064facfc2_36
Inventory in process, January 31	fill in the blank 439e04064facfc2_37	fill in the blank 439e04064facfc2_38	fill in the blank 439e04064facfc2_39
Total costs assigned by the Filling Department			$fill in the blank 439e04064facfc2_40

2. Journalize the entries for (1) costs transferred from Reaction to Filling and (2) the costs transferred from Filling to Finished Goods.

(1)		fill in the blank 32e234ff7f9af83_2
			fill in the blank 32e234ff7f9af83_4
(2)		fill in the blank 32e234ff7f9af83_6
			fill in the blank 32e234ff7f9af83_8

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		$fill in the blank f81c02fdd01c03a_2
Change in conversion cost per equivalent unit		fill in the blank f81c02fdd01c03a_4

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