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
(3,000 units, 30% completed):
	Direct materials (3,000 x $11.30)	$33,900
	Conversion (3,000 x 30% x $7.30)	6,570
		$40,470

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

Direct materials transferred from Reaction
	Department: 38,700 units at $11.00 a unit	$425,700
Direct labor		156,860
Factory overhead		150,712

During January, 38,400 units of specialty chemicals were completed. Work in ProcessFilling Department on January 31 was 3,300 units, 90% 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 14499a00dfcafa6_1
Received from Reaction Department			fill in the blank 14499a00dfcafa6_2
Total units accounted for by the Filling Department			fill in the blank 14499a00dfcafa6_3
Units to be assigned costs:
		Equivalent Units
	Whole Units	Direct Materials	Conversion
Inventory in process, January 1	fill in the blank 14499a00dfcafa6_4	fill in the blank 14499a00dfcafa6_5	fill in the blank 14499a00dfcafa6_6
Started and completed in January	fill in the blank 14499a00dfcafa6_7	fill in the blank 14499a00dfcafa6_8	fill in the blank 14499a00dfcafa6_9
Transferred to finished goods in January	fill in the blank 14499a00dfcafa6_10	fill in the blank 14499a00dfcafa6_11	fill in the blank 14499a00dfcafa6_12
Inventory in process, January 31	fill in the blank 14499a00dfcafa6_13	fill in the blank 14499a00dfcafa6_14	fill in the blank 14499a00dfcafa6_15
Total units to be assigned costs	fill in the blank 14499a00dfcafa6_16	fill in the blank 14499a00dfcafa6_17	fill in the blank 14499a00dfcafa6_18
Cost Information
Costs per equivalent unit:
		Direct Materials	Conversion
Total costs for January in Filling Department		$fill in the blank 14499a00dfcafa6_19	$fill in the blank 14499a00dfcafa6_20
Total equivalent units		fill in the blank 14499a00dfcafa6_21	fill in the blank 14499a00dfcafa6_22
Cost per equivalent unit		$fill in the blank 14499a00dfcafa6_23	$fill in the blank 14499a00dfcafa6_24
Costs charged to production:
	Direct Materials	Conversion	Total
Inventory in process, January 1			$fill in the blank 14499a00dfcafa6_25
Costs incurred in January			fill in the blank 14499a00dfcafa6_26
Total costs accounted for by the Filling Department			$fill in the blank 14499a00dfcafa6_27
Cost allocated to completed and partially completed units:
Inventory in process, January 1 balance			$fill in the blank 14499a00dfcafa6_28
To complete inventory in process, January 1	$fill in the blank 14499a00dfcafa6_29	$fill in the blank 14499a00dfcafa6_30	fill in the blank 14499a00dfcafa6_31
Cost of completed January 1 work in process			$fill in the blank 14499a00dfcafa6_32
Started and completed in January	fill in the blank 14499a00dfcafa6_33	fill in the blank 14499a00dfcafa6_34	fill in the blank 14499a00dfcafa6_35
Transferred to finished goods in January			$fill in the blank 14499a00dfcafa6_36
Inventory in process, January 31	fill in the blank 14499a00dfcafa6_37	fill in the blank 14499a00dfcafa6_38	fill in the blank 14499a00dfcafa6_39
Total costs assigned by the Filling Department			$fill in the blank 14499a00dfcafa6_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 f6f1b2019f91fff_2
			fill in the blank f6f1b2019f91fff_4
(2)		fill in the blank f6f1b2019f91fff_6
			fill in the blank f6f1b2019f91fff_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 989156f3f03c012_2
Change in conversion cost per equivalent unit		fill in the blank 989156f3f03c012_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.