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., 6,200 units, 1/5 completed					8,556
	31	Direct materials, 248,000 units	347,200				355,756
	31	Direct labor	60,500				416,256
	31	Factory overhead	15,076				431,332
	31	Goods transferred, 249,000 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 The rate used to allocate costs between completed and partially completed production.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
Unit Information
Units charged to production:
Inventory in process, March 1
Received from materials storeroom
Total units accounted for by the Blending Department
Units to be assigned costs:
		Equivalent Units
	Whole Units	Direct Materials	Conversion
Inventory in process, March 1
Started and completed in March
Transferred to Molding Department in March
Inventory in process, March 31
Total units to be assigned costs
Cost Information
Costs per equivalent unit:
		Direct Materials	Conversion
Total costs for March in Blending Department		$	$
Total equivalent units
Cost per equivalent unit		$	$
Costs charged to production:
	Direct Materials	Conversion	Total
Inventory in process, March 1			$
Costs incurred in March
Total costs accounted for by the Blending Department			$
Cost allocated to completed and partially completed units:
Inventory in process, March 1 balance			$
To complete inventory in process, March 1	$	$
Cost of completed March 1 work in process			$
Started and completed in March
Transferred to Molding Department in March			$
Inventory in process, March 31
Total costs assigned by the Blending Department			$

Answer 1

UNITS TO ACCOUNT FOR:
Beginning Work in Process units					6,200
Add: Units Started in Process					248,000
Total Units to account for:					254,200
Equivalent Units:
			Whole	Material Cost		Conversion
				% Completion	Units	% Completion	Units
Units completed from Beg. WIP			6200	0%	0	80%	4,960
Units started and completed			242800	100%	242,800	100%	242,800
Total Units transferred to Molding			249000		242,800		247,760
Ending Work in Process			5200	100%	5,200	80%	4,160
Total Equivalent units					248,000		251,920
COST PER EQUIVALENT UNIT:
				Material		Conversion
Total cost added during the year				347,200		75,576
Equivalent Units				248,000		251,920
Cost per Equivalent unit				1.40		0.30
TOTAL COST CHARGED TO PRODUCTION				Material	Conversion	Total
Inventory cost in Beginning						8556
Cost incurred in march						422776
Total cost to be accounted for						431332
Cost allocated to completed and partially completed:
Inventory in Beginning						8556
To complete the inventory				0	1488	1488
Cost of completed Beginning WIP						10044
Started and completed in marh				339920	72840	412760
Transferred to Mmolding deptt.						422804
Inventory in Process in Mar31				7280	1248	8528
Total cost assigned						431332