Equivalent Unts and Related Costs; st of Production Report: Entries Dover Chemical Company manufactures specialty chemicals by a senies 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 frshed chemicals The balance in the account Work in Process-Filling was as follows on January 1: work in Process-Fling Department s, competed s60.630 ,107 Conversion (4,300 x 20%x$9.10) 7,826 The following costs were charged to Work in Process-Filling during January: Direct materials transferred from Reaction Department: 55.500 units at $13.80 a unit $765.900 Direa or arbaad During January, S5.000 units of specialty chemicals were completed, Work in Process-Filing Department on January 31 was 4800 units, S0% completed Requireds t for January, f an amount is zero, enter "o. f required, round your cost per equivalent unit answers to two decimal places. Prepare a cost of production report for er Chemical Company Cost of Production Report-Filling Department For the M Ended January 31 nt Information unts dharged to production 4300 Invertory in prooess, January 1 55.500 Receved from Reaction Department s9000w Total units accounted for by the Filling Department Units to be assigned costs Equivalent Units Whole Units Direct Materials Conversion Inventory in process January 2 0 50700v 50,700 50.700 Started and completed in January 55000- 50700 Trandfered to finished goods in Januay 54140 4000w 2400 4800 Inventory in process January 31 55.500 v 59.000- 56540 Total unts to be assigned costs ost Ifomation Costs per equivalent unit Direct Materiale Comversion S 765.900 Total costs for January in Filling Department 531476 51.500 Total equvalert unts 56540 13.80 9.40 Cost per equivalent unt Costs charged to produtions Direct Materials Comversion Tota G0.456 Inventory in process January 1 1,297376 Costs inourred in January 1,365.832 Total costs accounted for by the Filling Department completed units 68456 Ioventory in grocess January 1 balance To complete inventory in process January 1 Cost of comprted January 1 work in process Stated and comieted in lanary Trandferred to firished goods in January Inventory in process January 31 Tota costs assqned by the Filling Depertment Fe , Calculate equivalent unts t r materials and conversion costs. Calculate the cost per equivalent unit for materials and conversion costs. Calculate the costs assigned to the beginning inventory, the units started and completed, and the ending inventory. Joumalize the entries for (1) costs transferred from Reaction to Filling and (2) the costs transferred from Filling to Finished Goods Work in Process-Filling Department 76900 (1) Work in Process Reaction Department 765900 2) Finished Goods Work in Process Filling Department Feedback Che e cantured in e work in process account? Are these units 100% complete or are they being transferred . Remember that there are three types of inventory: materials, work in process, and finished goods. What costs another department? Determine the increase or decrease in the cost r equivalent t from December January for direct materials and conversion costs. If required, round your answers to two decimal places t from December t 3. Detemine the increase or decrease in the cost requialent January for direct materials and conversion costs. If required, round your answers o two decimal places Increase or Decrease Amount Decrease Change in direct materials cost per equivalent unit Increase Change in conversion cost ner eauivalent unit Finished Goods 4. The cost of production report may be used as the basis for allocating product costs between Work in Process The report can also be used to control costs by holding each department head responsible for the units entering production and e costs incurred in the department, Any differences in unit product costs from one month to another, such as those in part ( can be studied carefully and any sionficant dferences investigated Feeback Check My Vr and 4. Compare the costs per equivalent i t for December and January. Review the benefits of the cost of production report Patits cnnect