Question

Equivalent Units and Related Costs; Cost of Production Report; Entries

Wilmington 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, 2016:

Work in Process—Filling Department
(3,000 units, 60% completed):
	Direct materials (3,000 x $18)	$54,000
	Conversion (3,000 x 60% x $11.7)	21,060
		$75,060

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

Direct materials transferred from Reaction
	Department: 38,700 units at $17.8 a unit	$688,860
Direct labor		242,170
Factory overhead		232,670

During December, 38,400 units of specialty chemicals were completed. Work in Process—Filling Department on December 31 was 3,300 units, 90% completed.

Required:

1. Prepare a cost of production report for the Filling Department for December. If an amount is zero, enter "0". If required, round your cost per equivalent unit answers to two decimal places.

Answer 1

Cost of Production Report-Filling Department	FIFO method
For the Month Ended Dec 31
UNITS	Whole Units	Equivalent Units
		Direct Materials	Conversion
Units charged to production:
Inventory in process, Dec 1	3,000	3,000	3,000
Received from Reaction dept	38,700	38,700	38,700
Total units accounted for by the Filling Department	41,700	41,700	41,700
Units to be assigned costs:
Inventory in process, Dec 1 (60 completed)	3,000	0	1200	(3000*40%)
Started and completed in dec	35,400	35,400	35,400
Transferred to packaging Department in July	38,400	35400	36600
Inventory in process, dec 31 (90% completed)	3,300	3,300	2970
Total units to be assigned costs	41700	38700	39570
COSTS	Costs
	Direct Materials	Conversion	Total
Cost per equivalent unit:
Total costs for Dec in Filling Department	$688,860	$474,840	$1,163,700
Total equivalent units	38700	39570
Cost per equivalent unit	$17.80	$12.00	$29.80
Costs assigned to production:
Inventory in process, Dec 1	$54,000	$21,060	$75,060
Costs incurred in Dec	$688,860	$474,840	$1,163,700
Total costs accounted for by the Shifting Department	$742,860	$495,900	$1,238,760
Cost allocated to completed and
partially completed units:
Inventory in process, dec 1 balance			$75,060
To complete inventory in process, Dec 1 (1200*17.8)	$0.00	$14,400	14,400
Cost of completed July work in process			$89,460
Started and completed in Dec (35400*17.8)/12	$630,120	$424,800	1,054,920
Transferred to Packaging Department in Dec	$630,120.00	$439,200.00	1,144,380
Inventory in process, Dec 31 (3300*17.8) and 2970*12	$58,740	$35,640	$94,380
Total costs assigned by the Filing Department	$688,860.00	$474,840.00	$1,238,760
If weighted average method used
ProductionDepartment		Equivalent Units
Flow Of Units	Physical Units	Direct material	Conversion Cost
Units to be accounted for
Beginning work in process inventory	3000
Units started this period	38700
Total u nits to be accounted for	41700
Units accounnted for:
Units completed (b)	38400	38400	38400
Ending work in progress inventory c (100% material and 60% conversion)	3300	3300	2970
Total units to be accounted for (f)	41700	41700	41370
Flow of Cost
Cost in the begnning work in progress inventory	54000	21060	75060
cost added to process	688860	$474,840	1163700
Total Cost to be accounted for (e)	742860	495900	1238760
Cost per equivalent unit (a)	41.84	11.89	29.94
Cost accounted for
Cost assigned to units transferred out (a*b)	1606484	456656	1149828
Cost in ending work in progress inventory (a*c)	128176	39244	88932
Total Cost accounted for	1734660	495900	1238760
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