Venus Chocolate Company processes chocolate into candy bars. The process begins
ID: 2372653 • Letter: V
Question
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., 6,400 units, 2/5 completed
14,848
31
Direct materials, 256,000 units
563,200
578,048
31
Direct labor
124,200
702,248
31
Factory overhead
31,056
733,304
31
Goods transferred, 257,000 units
?
31
Bal., ? units, 4/5 completed
a. Assuming that the March 1 work in process inventory includes $12,800 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:
$
Change in conversion cost per equivalent unit:
$
ACCOUNT Work in Process%u2014Blending Department
ACCOUNT NO.
Date
Item
Debit
Credit
Balance
Debit
Credit
Mar.
1
Bal., 6,400 units, 2/5 completed
14,848
31
Direct materials, 256,000 units
563,200
578,048
31
Direct labor
124,200
702,248
31
Factory overhead
31,056
733,304
31
Goods transferred, 257,000 units
?
31
Bal., ? units, 4/5 completed
Explanation / Answer
https://docs.google.com/document/d/16LmdJtfP4lSjFiuoZbKmehjFs3O1dvFieYXD6haRCCQ/pub
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