Equivalent Units and Releted Costs; Cost of Production Report; Entries Dover Chemical Company manufactures specialty cherices by a series of three processes, all materials being introduced in the Disalling 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 Process-Filling was as follows on January 1: Work in Process-Filing Department (2,400 units, 20% completed) Direct materials (2.400 x $15.60) $39,840 Conversion (2,400 x 20% x $10.60) 5,164 $15,021 The following costs were charged to Work In Process-Filling during January: Direct materiais transferred from Reaction Department: 31,000 units at $16,40 a urit 5508,400 Direct labor 175,660 Factory overhead 168,773 During January 30,700 units of specialty chemicals were completed. Work in Process-Filling Department on January 31 was 2,700 units, 30% completed. Required: 1. Prepare a cost of production report for the filling Department for January. It an amount is zamo, anter "". It 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 2400 Received from Reaction Departrent Total units accounted for by the Filling Department Units to be assigned casts Whole Units Equivalent Units Direct Materials Conversion 0 1.920 Inventory in arocess, January 1 2,100 Started and completed in January Transferred to finished goods in January Inventory in process, January 31 Total urs to be assigned costs Cost Information Cost per equivalent unit: Direct Materials Conversion Total costs for January in Filing Department Total equivalent units Cast per cuivant unit Total cuivalent units Cost aer cuivalent unit Costs assigned to pracuction: Direct Materials Conversion Total Inventory in prucess, January 1 Costs incurred in January Total costs a coursed for by the Filling Department Cests 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 lanuary Transferred to finished goods in January Inventory in process. January 31 Total costs assigned by the Filling Department 2. lcurnalize the entries for (1) costs tansterred from Reaction to Filing and (2) the cost transferred from Filling to Finished Goods. It an amount box docs not require an entry, leave it blank. (1) Work In Process Filling Department Work in Process-Reaction Department (2) Finished Goods Work In Process-Filling Department Feedback Cins 2. Remember that there are three types of inventory; materials, work in process, and finished goods. What costs are captured in the work in process account? Are these units 100% complete or are they being transferred to another department? 3. Determine the Increase or decrease in the cost per equivalent unit from December tn January for direct materials and conversion costs. It required, round your answers to tao decimal places. Increase or Decrease Amount Change in direct materias os per equivalent unit Decreme $ Change in conversion cost per equivalent unit Increase 4. Discuss the uses of the cast of production report and the results of part (3) The cost of production report may Le used as the basis for allocating product costs Letween Work in Process and Finished Goods. The report can also be used to control costs Ly holding each department lead 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 these in pert (3), can be studied carefully and any significant differences investigated. Fructe Chess My W 3 and 1. Compare the costs per equivalent unit for December and January. Review the benefits of the cost of production report. Equivalent Units and Releted Costs; Cost of Production Report; Entries Dover Chemical Company manufactures specialty cherices by a series of three processes, all materials being introduced in the Disalling 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 Process-Filling was as follows on January 1: Work in Process-Filing Department (2,400 units, 20% completed) Direct materials (2.400 x $15.60) $39,840 Conversion (2,400 x 20% x $10.60) 5,164 $15,021 The following costs were charged to Work In Process-Filling during January: Direct materiais transferred from Reaction Department: 31,000 units at $16,40 a urit 5508,400 Direct labor 175,660 Factory overhead 168,773 During January 30,700 units of specialty chemicals were completed. Work in Process-Filling Department on January 31 was 2,700 units, 30% completed. Required: 1. Prepare a cost of production report for the filling Department for January. It an amount is zamo, anter "". It 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 2400 Received from Reaction Departrent Total units accounted for by the Filling Department Units to be assigned casts Whole Units Equivalent Units Direct Materials Conversion 0 1.920 Inventory in arocess, January 1 2,100 Started and completed in January Transferred to finished goods in January Inventory in process, January 31 Total urs to be assigned costs Cost Information Cost per equivalent unit: Direct Materials Conversion Total costs for January in Filing Department Total equivalent units Cast per cuivant unit Total cuivalent units Cost aer cuivalent unit Costs assigned to pracuction: Direct Materials Conversion Total Inventory in prucess, January 1 Costs incurred in January Total costs a coursed for by the Filling Department Cests 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 lanuary Transferred to finished goods in January Inventory in process. January 31 Total costs assigned by the Filling Department 2. lcurnalize the entries for (1) costs tansterred from Reaction to Filing and (2) the cost transferred from Filling to Finished Goods. It an amount box docs not require an entry, leave it blank. (1) Work In Process Filling Department Work in Process-Reaction Department (2) Finished Goods Work In Process-Filling Department Feedback Cins 2. Remember that there are three types of inventory; materials, work in process, and finished goods. What costs are captured in the work in process account? Are these units 100% complete or are they being transferred to another department? 3. Determine the Increase or decrease in the cost per equivalent unit from December tn January for direct materials and conversion costs. It required, round your answers to tao decimal places. Increase or Decrease Amount Change in direct materias os per equivalent unit Decreme $ Change in conversion cost per equivalent unit Increase 4. Discuss the uses of the cast of production report and the results of part (3) The cost of production report may Le used as the basis for allocating product costs Letween Work in Process and Finished Goods. The report can also be used to control costs Ly holding each department lead 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 these in pert (3), can be studied carefully and any significant differences investigated. Fructe Chess My W 3 and 1. Compare the costs per equivalent unit for December and January. Review the benefits of the cost of production report