Dover Chemical Company manufactures specialty chemicals by a series of three pro

Question

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 balance in the account Work in Process—Filling was as follows on January 1:

The following costs were charged to Work in Process—Filling during January:

During January, 43,500 units of specialty chemicals were completed. Work in Process—Filling Department on January 31 was 3,800 units, 40% completed.

Required:

1. Prepare a cost of production report for the Filling Department for January. If an amount is zero, enter "0". If required, round your cost per equivalent unit answers to two decimal places.

Units to be assigned costs:

Costs per equivalent unit:

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.

Work in Process—Filling Department (3,400 units, 70% completed): Direct materials (3,400 x $16.80) $57,120 Conversion (3,400 x 70% x $10.90) 25,942 $83,062

Explanation / Answer

Solution 1:

Solution 2:

Dover Chemical Company Filling Department Computation of Equivalent unit (FIFO) Particulars Physical units Material Conversion Units to be accounted for: Beginning WIP Inventory 3400 Units started this period 43900 Total unit to be accounted for 47300 Units Accounted for: Units completed and transferred out From beginning inventory
Material - 0%
Conversion - 30% 3400 0 1020 Started and completed currently 40100 40100 40100 Transferred to finished goods 43500 40100 41120 Units in ending WIP
Material - 100%
Conversion - 40% 3800 3800 1520 Total units accounted for 47300 43900 42640

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