Question

Bavarian 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 October 31, 2014:

ACCOUNT Work in Process Blending Department Debit Date Item Oct. 1 Bal, 2,300 units, completed 429,000 31 Direct materials, 26,000 units 31 Direct labor 100,560 31 Factory overhead 48,480 31 Goods transferred, 25,700 units 31 Bal., units, 's completed ACCOUNT NO Balance Credit Debit Credit 46,368 475,368 575,928 624,408

Required:

Hide 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". If required, round your cost per equivalent unit answers to the nearest cent. Bavarian Chocolate Company Cost of Production Report-Blending Department For the Month Ended October 31, 2014 Unit Information Units charged to production: Inventory in process, October 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, October 1 Started and completed in October Transferred to Molding Department in October- Inventory in process, October 31 Total units to be assigned costs Cost Information Costs per equivalent unit: Direct Materials Conversion Total costs for October in Blending Department $   $   Total equivalent units Cost per equivalent unit $   $   Costs charged to production: Direct Materials Conversion Total Inventory in process, October 1 $   Costs incurred in October Total costs accounted for by the Blending Department $   Cost allocated to completed and partially completed units: Inventory in process, October 1 balance $   To complete inventory in process, October 1 $   Cost of completed October 1 work in process $   Started and completed in October $   Transferred to Molding Department in October $   Inventory in process, October 31 Total costs assigned by the Blending Department $

2. Assuming that the October 1 work in process inventory includes direct materials of $38,295, determine the increase or decrease in the cost per equivalent unit for direct materials and conversion between September and October. If required, round your answers to two decimal places.

	Increase or Decrease	Amount
Change in direct materials cost per equivalent unit	SelectDecreaseIncreaseCorrect 1 of Item 2	$
Change in conversion cost per equivalent unit	SelectDecreaseIncreaseCorrect 3 of Item 2	$

Answer 1

1. Cost production Report is as prepared below:

Bavarian Chocolate Company
Cost of Production Report-Blending Department
For the Month Ended October 31, 2014
Unit Information
Units charged to production:
Inventory in process, October 1	2,300
Received from materials storeroom	26,000
Total units accounted for by the Blending Department	28,300
Units to be assigned costs:
		Equivalent Units
	Whole Units	Direct Materials	Conversion
Inventory in process, October 1	2,300	0	920
Started and completed in October	23,400	23,400	23,400
Transferred to Molding Department in October-	25,700	23,400	24,320
Inventory in process, October 31	2,600	2,600	520
Total units to be assigned costs	28,300	26,000	24,840
Cost Information
Costs per equivalent unit:
	Direct Materials	Conversion
Total costs for October in Blending Department	4,29,000	149040
Total equivalent units	26,000	24,840
Cost per equivalent unit	16.5	6
Costs charged to production:
	Direct Materials	Conversion	Total
Inventory in process, October 1			46,368
Costs incurred in October			5,78,040
Total costs accounted for by the Blending Department			6,24,408
Cost allocated to completed and partially completed units:
Inventory in process, October 1 balance	0		46,368
To complete inventory in process, October 1	0	5520	5520
Cost of completed October 1 work in process			51,888
Started and completed in October	386100	140400	526500
Transferred to Molding Department in October			5,78,388
Inventory in process, October 31	42900	3120	46020
Total costs assigned by the Blending Department			6,24,408

2.

Direct material change will incraese and conversion cost chnage will decrease.