Paulson Dairy produces an organic butter that is sold by the pound. The production of the butter begins in the Churning Department. Data for the Churning Department for January follows:

Units in beginning Work in Process (WIP) inventory	70,000 units
Units started during the month (all direct materials, including cream
and salt, are added at the beginning of the churning process)	1,600,000 units
Units in ending Work in Process (WIP) inventory (50% of the way
through the process)	150,000 units
Cost information is as follows:
WIP - Churning Department balance as of January 1:
Direct material cost included in beginning WIP balance	290,400
Conversion cost included in beginning WIP balance	163,700
Beginning balance, WIP, January 1	$454,100
Manufacturing costs incurred during January:
Direct materials used	$1,580,000
Direct labor	15,000
Manufacturing overhead	555,000
Total manufacturing costs entered into production during January	$2,150,000

Prepare a production cost report for January for the Churning Department.

Prepare a production cost report for the Churning Department, one section at a time. (For entries with a $0 balance, make sure to enter "0" in the appropriate cell(s). Round cost per equivalent unit amounts to the nearest cent, $X.XX.)

Paulson Dairy Churning Department
Month Ended January 31
Production Cost Report
	Flow of	Equivalent Units
	Physical	Direct	Conversion
Flow of Production	Units	Materials	Costs
Units to account for:
Total physical units to account for
Units accounted for:
Total physical units accounted for
Total equivalent units

	Direct	Conversion
Total Costs to Account for and Cost per Equivalent Unit	Materials	Costs
Total costs to account for
Cost per equivalent unit

		Direct	Conversion
	Assignment of total costs:	Materials	Costs	Total
	Completed and transferred out:
	Costs assigned to units completed and transferred out

	Ending work in process:
	Costs assigned to units in ending work in process, January 31
	Total costs accounted for

Requirement 2. How much did it cost to make one pound of butter in the Churning Department? (Round all amounts to the nearest cent, $X.XX.)

Direct material cost
Conversion cost
Total cost

Requirement 3. How much did it cost to make a partially completed pound of butter in the Churning Department? Does this make sense? Why or why not?

How much did it cost to make a partially completed pound of butter in the Churning Department? (Round all amounts to the nearest cent, $X.XX.)

Direct material cost
Conversion cost
Total cost

Does this make sense? Why or why not?

because

% of the

have not yet been added.