Problem 20-2 (Algorithmic) Cost of Production Report

Venus 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 March 31, 2012:

ACCOUNT Work in Process%u2014Blending Department

ACCOUNT NO.

Date

Item

Debit

Credit

Balance

Debit

Credit

Mar.

1

Bal., 6,600 units, 1/5 completed

14,916

31

Direct materials, 264,000 units

580,800

595,716

31

Direct labor

127,600

723,316

31

Factory overhead

31,952

755,268

31

Goods transferred, 265,000 units

?

31

Bal., ? units, 2/5 completed

?

1. Prepare a cost of production report, and identify the missing amounts for Work in Process%u2014Blending Department. If an amount is zero, enter in a zero (0). When computing cost per equivalent units, round to two decimal places.

2. Assuming that the March 1 work in process inventory includes $13,860 of direct materials, determine the increase or decrease in the cost per equivalent unit for direct materials and conversion between February and March. If required, round your answers to the nearest cent.

	Increase or Decrease	Amount
Change in direct materials cost per equivalent unit:	Increase	$ 0
Change in conversion cost per equivalent unit:	Decrease	$ blank