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
(1,800 units, 40% completed):
	Direct materials (1,800 x $15.70)	$28,260
	Conversion (1,800 x 40% x $10.20)	7,344
		$35,604

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

Direct materials transferred from Reaction
	Department: 23,200 units at $15.40 a unit	$357,280
Direct labor		123,590
Factory overhead		118,750

During January, 23,000 units of specialty chemicals were completed. Work in ProcessFilling Department on January 31 was 2,000 units, 40% completed.

bb 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 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 Filing Department Units to be assigned costs: Equlvalent Units Whole Direct Units 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 Costs per equivalent unit: Direct Materials Conversion Total costs for January in Filing Department Total equivalent units Cost per equivalent unit Costs charged to production: Direct Total Materials Conversion Inventory in process, January 1 Costs incurred in January Total costs occounted for by the Filing Department Cost allocated to completed and partially completed units Inventory in process, January 1 balance Direct Materials Conversion Total Inventory in process, January 1 Costs incurred in January Total costs accounted for by the Filling Department Cost 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 Filing Department 2. Journalize the entries for (1) costs transferred from Reaction to Filing and (2) the costs transferred from Filing to Finished Goods (1) 000 QODI000 (2) 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 answer to two decimal places Increase or Decrease Amount Change in direct materials cost per equivalent unit Change in conversion cost per equivalent unit 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 cost from one month to another, such as those in part (3), can be studied carefully and any significant differences investigated