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 account Work in Process-Filling was as follows on January 1: The balance Work in Process-Filling Department (3,000 units, 60% completed) Direct materials (3,000 x $12.8) $38,400 Conversion (3,000 x 60% x $8.3) 14,940 $53,340 The following costs were charged to Work in Process-Filling during January: Direct materials transferred from Reaction Department: 38,700 units at $12.6 a unit $487,620 Direct labor 160,090 Factory overhead 153,815 During January, 38,400 units of specialty chemicals were completed. Work in Process-Filling Department on January 31 was 3,300 units, 10% completed. Required: 1. Prepare a cost of production report for the Filling Department for January. If an amount is zero, enter "O". If required, round your cost per equivalent unit answers to two decimal places. Dover Chemical Company 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 Direct Materials Units 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: Costs assigned to production: Direct Total Materials Conversion 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 2. Journalize the entries for (1) costs transferred from Reaction to Filling and (2) the cost transferred from Filling to Finished Goods. (1)Work in Process-Filling Department Work in Process-Reaction Department (2) Finished Goods Work in Process-Filling Department

Answer 1

Unit Information
Units charged to production:
Inventory in process, January 1			3000
Received from reaction department			38700
Total units accounted for by the Filling Department			41700
Units to be assigned costs:
		Equivalent Units
	Whole Units	Direct Materials	Conversion
Inventory in process, January 1	3000	0	1200
Started and completed in January	35400	35400	35400
Transferred to Finished goods in January	38400	35400	36600
Inventory in process, January 31	3300	3300	330
Total units to be assigned costs	41700	38700	36930
Cost Information
Costs per equivalent unit:
		Direct Materials	Conversion
Total costs for January in Filling Department		487620	313905
Total equivalent units		38700	36930
Cost per equivalent unit		12.60	8.50
Costs charged to production:
	Direct Materials	Conversion	Total
Inventory in process, January 1			53340
Costs incurred in January			801525
Total costs accounted for by the Filling Department			854865
Cost allocated to completed and partially completed units:
Inventory in process, January 1 balance			53340
To complete inventory in process, January 1	0	10200	10200
Cost of completed January 1 work in process			63540
Started and completed in January	446040	300900	746940
Transferred to Finished goods in January			810480
Inventory in process, January 31	41580	2805	44385
Total costs assigned by the Filling Department			854865
2
Work in Process-Filling Department	487620
Work in Process-Reaction Department		487620
Finished goods	810480
Work in Process-Filling Department		810480