PR $17-2$B Cost of production report

Obj. $2,4$

$1.$ Conversion cost per equivalent unit, $$6\mathrm{.}00$

Bavarian Chocolate Company processes chocolate into candy bars. The process begins by placing direct materials $($raw chocolate, milk, and sugar$)$ into the Blending Department. All materials are placed into production at the beginning of the blending process. After blending, the milk chocolate is then transferred to the Molding Department, where the milk chocolate is formed into candy bars. The following is a partial work in process account of the Blending Department at October $31$:

ACCOUNT Work in Process$-$Blending Department

ACCOUNT NO$.$

$\backslash$table$[[$Date$,$Item,Debit,Credit,Balance$],[$Debit$,$Credit$],[$Oct$.,1,$Bal., $2,300$ units, $3/5$ completed,,,$46,368,],[31,31-2-10,$Direct materials, $26,000$ units,$429,000,,475,368,],[31,$Direct labor,$100,560,,575,928,],[31,$Factory overhead,$48,480,,624,408,],[31,$Goods transferred, $25,700$ units,,?,,$],[31,$Bal., $?$ units,$1/5$ completed,,,?,$]]$

Instructions

Prepare a cost of production report, and identify the missing amounts for Work in ProcessBlending Department.

Assuming that the October $1$ work in process inventory includes direct materials of $$38,295,$ determine the increase or decrease in the cost per equivalent unit for direct materials and conversion between September and October.