Question

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, 2016:

ACCOUNT Work in Process—Blending Department							ACCOUNT NO.
Date		Item	Debit		Credit		Balance
							Debit		Credit
Mar.	1	Bal., 5,700 units, 2/5 completed					7,752
	31	Direct materials, 228,000 units	296,400				304,152
	31	Direct labor	55,300				359,452
	31	Factory overhead	13,844				373,296
	31	Goods transferred, 229,000 units			?
	31	Bal., ? units, 4/5 completed					?

Required:

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

Venus Chocolate Company

Cost of Production Report-Blending Department

For the Month Ended March 31, 2016

Answer 1

Venus Chocolate Company
Cost of Production Report-Blending Department
For the Month Ended March 31
Unit Information
Units charged to production:
Inventory in process, March 1			5700
Received from materials storeroom			228000
Total units accounted for by the Blending Department			233700
Units to be assigned costs:
		Equivalent Units
	Whole Units	Direct Materials	Conversion
Inventory in process, March 1	5700	0	3420
Started and completed in March	223300	223300	223300
Transferred to Molding Department in March	229000	223300	226720
Inventory in process, March 31	4700	4700	3760
Total units to be assigned costs	233700	228000	230480
Cost Information
Costs per equivalent unit:
		Direct Materials	Conversion
Total costs for March in Blending Department		296400	69144
Total equivalent units		228000	230480
Cost per equivalent unit		1.30	0.30
Costs charged to production:
	Direct Materials	Conversion	Total
Inventory in process, March 1			7752
Costs incurred in March			365544
Total costs accounted for by the Blending Department			373296
Cost allocated to completed and partially completed units:
Inventory in process, March 1 balance			7752
To complete inventory in process, March 1	0	1026	1026
Cost of completed March 1 work in process			8778
Started and completed in March	290290	66990	357280
Transferred to Molding Department in March			366058
Inventory in process, March 31	6110	1128	7238
Total costs assigned by the Blending Department			373296