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Equivalent Units and Related Costs Cost of Production Report Entries Dover Chemical Company manufactures specialty chemicals by a series of three processes, al materials being introduced in the Disting Department. From the Disting Department, the materials pass through the Reaction and Filing departments, emerging as finished chemicals The balance in the account Work in Processing was as follows on January 11 Work in Processing Department (2,600 , 40% completed) Direct materials (2.600 x 5152) $39.520 Conversion 2.600 x 40 x 59.) 10,192 $49,712 The following costs were charged to work in Processing during January Direct materiais transferred from Reaction Department: 33,500 a $14.9 5499,150 Direct labor 174,140 Factory Overhead 167,982 During January 13,200 units of specialty chemicals were completed. Work in Processing Department on January 31 was 2.900 units, completed Required 1. Prepare a cost of production report for the ring Department for January. If an amount is er, enter "O". If required, round your cont per cuivalent unit answers to two decimal places. Dover Chemical company Cost of Production Report-Filling Department For the Month Ended January Units charged to production Inventory in process, January 1 Next 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: Whole Units Equivalent 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 January ASSIMILIH 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 Filing Department 2. Journalize the entries for (1) costs transferred from Reaction to Filling and (2) the cost transferred from Filing to finished Goods. If an amount box does not require an entry, leave bank (1) (2) 3. Determine the increase or decrease in the cost per equivalent unit from December to January for direct materials and conversion costs. It required, round your answers to two decimal places Increase or Decrease Amount 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 Filing Department 2. Journalize the entries for (1) costs transferred from Reaction to Filing and (2) the cost transferred from Filing to Finished Goods. If an amount box does not require an entry, leave it blank. (1) (2) 3. Determine the increase or decrease in the cost per equivalent unit from December to January for direct materials and conversion costs. If required, round your answers to two decimal places Increase or Decrease Amount Change in direct materials cost per equivalent unit Change in conversion cost per equivalent 4. Discuss the use of the cost of production report and the results of part (1) The cost of production report may be used as the basis for allocating product costs between and The report can also be used to control costs by holding each department head responsible for the units entering production and the costs incurred in the department. Any differences in un product costs from one month to another, such as those in part()). can be studied carefully and any significant differences investigated

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