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
(3,500 units, 60% completed):
	Direct materials (3,500 x $13.60)	$47,600
	Conversion (3,500 x 60% x $8.80)	18,480
		$66,080

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

Direct materials transferred from Reaction
	Department: 45,200 units at $13.30 a unit	$601,160
Direct labor		205,840
Factory overhead		197,764

During January, 44,800 units of specialty chemicals were completed. Work in ProcessFilling Department on January 31 was 3,900 units, 30% 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 49d5e4f6a05ffa0_1
Received from Reaction Department			fill in the blank 49d5e4f6a05ffa0_2
Total units accounted for by the Filling Department			fill in the blank 49d5e4f6a05ffa0_3
Units to be assigned costs:
		Equivalent Units
	Whole Units	Direct Materials	Conversion
Inventory in process, January 1	fill in the blank 49d5e4f6a05ffa0_4	fill in the blank 49d5e4f6a05ffa0_5	fill in the blank 49d5e4f6a05ffa0_6
Started and completed in January	fill in the blank 49d5e4f6a05ffa0_7	fill in the blank 49d5e4f6a05ffa0_8	fill in the blank 49d5e4f6a05ffa0_9
Transferred to finished goods in January	fill in the blank 49d5e4f6a05ffa0_10	fill in the blank 49d5e4f6a05ffa0_11	fill in the blank 49d5e4f6a05ffa0_12
Inventory in process, January 31	fill in the blank 49d5e4f6a05ffa0_13	fill in the blank 49d5e4f6a05ffa0_14	fill in the blank 49d5e4f6a05ffa0_15
Total units to be assigned costs	fill in the blank 49d5e4f6a05ffa0_16	fill in the blank 49d5e4f6a05ffa0_17	fill in the blank 49d5e4f6a05ffa0_18
Cost Information
Cost per equivalent unit:
		Direct Materials	Conversion
Total costs for January in Filling Department		$fill in the blank 49d5e4f6a05ffa0_19	$fill in the blank 49d5e4f6a05ffa0_20
Total equivalent units		fill in the blank 49d5e4f6a05ffa0_21	fill in the blank 49d5e4f6a05ffa0_22
Cost per equivalent unit		$fill in the blank 49d5e4f6a05ffa0_23	$fill in the blank 49d5e4f6a05ffa0_24
Costs assigned to production:
	Direct Materials	Conversion	Total
Inventory in process, January 1			$fill in the blank 49d5e4f6a05ffa0_25
Costs incurred in January			fill in the blank 49d5e4f6a05ffa0_26
Total costs accounted for by the Filling Department			$fill in the blank 49d5e4f6a05ffa0_27
Costs allocated to completed and partially completed units:
Inventory in process, January 1 balance			$fill in the blank 49d5e4f6a05ffa0_28
To complete inventory in process, January 1		$fill in the blank 49d5e4f6a05ffa0_29	fill in the blank 49d5e4f6a05ffa0_30
Cost of completed January 1 work in process			$fill in the blank 49d5e4f6a05ffa0_31
Started and completed in January	$fill in the blank 49d5e4f6a05ffa0_32	fill in the blank 49d5e4f6a05ffa0_33	fill in the blank 49d5e4f6a05ffa0_34
Transferred to finished goods in January			$fill in the blank 49d5e4f6a05ffa0_35
Inventory in process, January 31	fill in the blank 49d5e4f6a05ffa0_36	fill in the blank 49d5e4f6a05ffa0_37	fill in the blank 49d5e4f6a05ffa0_38
Total costs assigned by the Filling Department			$fill in the blank 49d5e4f6a05ffa0_39

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.

(1)		fill in the blank 8a2bfb06802a023_2	fill in the blank 8a2bfb06802a023_3
		fill in the blank 8a2bfb06802a023_5	fill in the blank 8a2bfb06802a023_6
(2)		fill in the blank 8a2bfb06802a023_8	fill in the blank 8a2bfb06802a023_9
		fill in the blank 8a2bfb06802a023_11	fill in the blank 8a2bfb06802a023_12

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 b1aa5804a034060_2
Change in conversion cost per equivalent unit		$fill in the blank b1aa5804a034060_4

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

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.