Question

Cast Production Report Bavarian Chocolate Company processes chocolate into candy bars. The process begins by placing direct materials ( chocolate, milk and sugar) into the Blending Department materials are placed into production at the beginning of the blending process. After blending, the milk chocolate is the transferred to the Molding Department, where the milk chocolate formed into candy bars. The following is a partial work in process account of the Blending Department at October 311 ACCOUNT Work in Procee ding Department ACCOUNT NO. Date Team Debit Credit Oct. 1 Bal 2,300 units, 3/5 completed 31 Direct materials, 26.000 units 31 Direct labor 31 Factory overhead 31 Goods transferred 25.700 units 31 Bal 2 units 1/5 completed

Answer 1

Bavarian Chocolate Company
Cost of Production Report-Roasting Department
For the Month Ended October 31
Unit Information
Units charged to production:
Inventory in process, October 1			2300
Received from materials storeroom			26000
Total units accounted for by the Roasting Department			28300
Units to be assigned costs:
		Equivalent Units
	Whole Units	Direct Materials	Conversion
Inventory in process, October 1	2300	0	920
Started and completed in October	23400	23400	23400
Transferred to Molding Department in October	25700	23400	24320
Inventory in process, October 31	2600	2600	520
Total units to be assigned costs	28300	26000	24840
Cost Information
Costs per equivalent unit:
		Direct Materials	Conversion
Total costs for October in Roasting Department		429000	149040
Total equivalent units		26000	24840
Cost per equivalent unit		16.50	6.00
Costs charged to production:
	Direct Materials	Conversion	Total
Inventory in process, October 1			46368
Costs incurred in October			578040
Total costs accounted for by the Roasting Department			624408
Cost allocated to completed and partially completed units:
Inventory in process, October 1 balance			46368
To complete inventory in process, October 1	0	5520	5520
Cost of completed October 1 work in process			51888
Started and completed in October	386100	140400	526500
Transferred to Molding Department in October			578388
Inventory in process, October 31	42900	3120	46020
Total costs assigned by the Roasting Department			624408
2
	Increase or Decrease	Amount
Change in direct materials cost per equivalent unit	Decrease	0.15	=16.50-(38295/2300)
Change in conversion cost per equivalent unit	Increase	0.15	=6-((46368-38295)/(2300*3/5))