Equivalent Units and Related Costs: Cost of Production Report Entries Wilmington

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 Work in Process-Filling Department (4,800 units, 60% completed) Direct materials (4,800 x $14.80) Conversion (4,800 x 60% x $9.60) $71,040 27,648 $98,688 The following costs were charged to Work in Process-Filling during December: Direct materials transferred from Reaction Department: 61,900 units at $14.60 a unit Direct labor Factory overhead During December, 61,400 units of specialty chemicals were completed work in Process-filling Department on December 31 was 5.300 units, 30% completed. $903,740 303,500 291,589

Explanation / Answer

Wilmington Chemical Company Cost of Production Report-Filling Department For the Month Ended December 31, 2014 Unit Information Units charged to production: Inventory in process, December 1    4800 Received from Reaction Department    61900 Total units accounted for by the Filling Department    66700 Units to be assigned costs: Equivalent Units Whole Units Direct Materials Conversion Inventory in process, December 1 4800 0 1920 Started and completed in December 56600 56600 56600 Transferred to finished goods in December 61400 56600 58520 Inventory in process, December 31 5300 5300 1590 Total units to be assigned costs 66700 61900 60110 Cost Information Costs per equivalent unit: Direct Materials Conversion Total costs for December in Filling Department 903740 595089 Total equivalent units 61900 60110 Cost per equivalent unit 14.6 9.9 Costs charged to production: Direct Materials Conversion Total Inventory in process, December 1 98688 Costs incurred in December 1498829 Total costs accounted for by the Filling Department 1597517 Cost allocated to completed and partially completed units: Inventory in process, December 1 balance 98688 To complete inventory in process, December 1 (1920*9.9) 19008 19008 Cost of completed December 1 work in process 117696 Started and completed in December 826360 560340 1386700 Transferred to finished goods in December 1504396 Inventory in process, December 31 77380 15741 93121 Total costs assigned by the Filling Department 1597517 ans 2 Dr Cr Work In process-Filling 903740 Work In procee -Reaction 903740 Finished Goods 1504396 Work In process-Filling 1504396 ans 3 Charge in Direct material cost per equivalent units (14.8-14.6) Decraesed 0.2 Charge in conversion cost per equivalent units (9.9-9.6) Increases 0.3 ans 4 Work In process and Finished goods

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