Equivalent Units and Related Costs; Cost of Production Report; Entries Wilmingto
ID: 2445729 • Letter: E
Question
Equivalent Units and Related Costs; Cost of Production Report; Entries
Wilmington 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 December 1, 2014:
The following costs were charged to Work in Process—Filling during December:
During December, 23,000 units of specialty chemicals were completed. Work in Process—Filling Department on December 31 was 2,000 units, 30% completed.
1. Prepare a cost of production report for the Filling Department for December. If an amount is zero, enter "0". If required, round your cost per equivalent unit answers to two decimal places.
2. Journalize the entries for (1) costs transferred from Reaction to Filling and (2) the cost transferred from Filling to Finished Goods.
3. Determine the increase or decrease in the cost per equivalent unit from November to December for direct materials and conversion costs. If required, round your answers to two decimal places.
Work in Process—Filling Department (1,800 units, 60% completed): Direct materials (1,800 x $12.60) $22,680 Conversion (1,800 x 60% x $8.20) 8,856 $31,536Explanation / Answer
Units of Production
Equivalent Units Calculation
Cost of Productin Report
Journal Entry
For cost Transfered from Reaction to Filing
Work In Process Inventory-Filing Department $287,680
Work in Process Department -Reaction $287680
For Cost Transfered to Finished goods from Filing
Finished Goods Inventory $478525
Work in Process Inventory-Filing $478525
Cost Per Equivalent Unit for Direct Materials Increased from 1$12.40 Units in November to $13.38 Units in December. For conversion Cost the Cost per Equivalent Unit rise from $8.80 in November to $8.89 in December.
Units Beginning work in Progress 1,800 Strarted into production during the Month 23,200 Total Units in the Production 25,000Related Questions
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