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Problem 20-2 (Algorithmic) 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, 2012:

ACCOUNT Work in Process%u2014Blending Department							ACCOUNT NO.
Date		Item	Debit		Credit		Balance
							Debit		Credit
Mar.	1	Bal., 6,600 units, 1/5 completed					14,916
	31	Direct materials, 264,000 units	580,800				595,716
	31	Direct labor	127,600				723,316
	31	Factory overhead	31,952				755,268
	31	Goods transferred, 265,000 units			?
	31	Bal., ? units, 2/5 completed					?		1. Prepare a cost of production report, and identify the missing amounts for Work in Process%u2014Blending Department. If an amount is zero, enter in a zero (0). When computing cost per equivalent units, round to two decimal places. 2. Assuming that the March 1 work in process inventory includes $13,860 of direct materials, determine the increase or decrease in the cost per equivalent unit for direct materials and conversion between February and March. If required, round your answers to the nearest cent. Increase or Decrease Amount Change in direct materials cost per equivalent unit: Increase $ 0 Change in conversion cost per equivalent unit: Decrease $ blank

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