Question

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

Dover 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 January 1:

Work in Process—Filling Department
(2,900 units, 20% completed):
	Direct materials (2,900 x $17)	$49,300
	Conversion (2,900 x 20% x $11)	6,380
		$55,680

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

Direct materials transferred from Reaction
	Department: 37,400 units at $16.7 a unit	$624,580
Direct labor		219,690
Factory overhead		211,066

During January, 37,100 units of specialty chemicals were completed. Work in Process—Filling Department on January 31 was 3,200 units, 50% completed.

Required:

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

Dover Chemical Company
Cost of Production Report-Filling Department
For the Month Ended January 31
Unit Information
Units charged to production:
Inventory in process, January 1
Received from Reaction Department
Total units accounted for by the Filling Department
Units to be assigned costs:
		Equivalent Units
	Whole Units	Direct Materials	Conversion
Inventory in process, January 1
Started and completed in January
Transferred to finished goods in January
Inventory in process, January 31
Total units to be assigned costs
Cost Information
Cost per equivalent unit:
		Direct Materials	Conversion
Total costs for January in Filling Department		$	$
Total equivalent units
Cost per equivalent unit		$	$
Costs assigned to production:
	Direct Materials	Conversion	Total
Inventory in process, January 1			$
Costs incurred in January
Total costs accounted for by the Filling Department			$
Costs allocated to completed and partially completed units:
Inventory in process, January 1 balance			$
To complete inventory in process, January 1		$
Cost of completed January 1 work in process			$
Started and completed in January	$
Transferred to finished goods in January			$
Inventory in process, January 31
Total costs assigned by the Filling Department			$

Answer 1

Dover Chemical Company
Cost of Production Report-Filling Department
For the Month Ended January 31
Unit Information
Units charged to production:
Inventory in process, January 1			2900
Received from Reaction Department			37400
Total units accounted for by the Filling Department			40300
Units to be assigned costs:
		Equivalent Units
	Whole Units	Direct Materials	Conversion
Inventory in process, January 1	2900	0	2320
Started and completed in January	34200	34200	34200
Transferred to finished goods in January	37100	34200	36520
Inventory in process, January 31	3200	3200	1600
Total units to be assigned costs	40300	37400	38120
Cost Information
Costs per equivalent unit:
		Direct Materials	Conversion
Total costs for January in Filling Department		624580	430756
Total equivalent units		37400	38120
Cost per equivalent unit		16.70	11.30
Costs charged to production:
	Direct Materials	Conversion	Total
Inventory in process, January 1			55680
Costs incurred in January			1055336
Total costs accounted for by the Filling Department			1111016
Cost allocated to completed and partially completed units:
Inventory in process, January 1 balance			55680
To complete inventory in process, January 1	0	26216	26216
Cost of completed January 1 work in process			81896
Started and completed in January	571140	386460	957600
Transferred to finished goods in January			1039496
Inventory in process, January 31	53440	18080	71520
Total costs assigned by the Filling Department			1111016