Wellington Chemical Company manufactures specialty chemicals by a series 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 finished chemicals.

The balance in the account Work in Process$-$Filling was as follows on December $1,$

$2010$:

Work in Process$-$Filling Department units, $60\%$ completed$)$:

$[$ Direct materials $(2,800$$$14,60),$$$40,880],[$ Conversion $(2,80060\%$$$9\mathrm{.}25),15,540],[,$$$56,420]$

The following costs were charged to Work in Process$-$Filling during December:

Direct materials transferred from Reaction

Department: $36,200$ units at $$14,40$ a unit $,$$$521,280$

Direct labour Factory overhead

During December, $35,900$ units of specialty chemicals were completed. Work in

Process$-$Filling Department on December $31$ was $3,100$ units, $30\%$ completed.

Instructions

Prepare a cost of production report for the Filling Department for December.

Journalize the entries for costs transferred from Reaction to Filling and the cost trans$-$

ferred from Filling to finished goods.

Determine the increase or decrease in the cost per equivalent unit from November

to December for direct materials and conversion costs.

Discuss the uses of the cost of production report and the results of part $(3).$