Equivalent Units and Related Costs; Cost of Production Report; Entries Dover Che
ID: 2602579 • Letter: E
Question
Equivalent Units and Related Costs; Cost of Production Report; Entries
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, 29,400 units of specialty chemicals were completed. Work in Process—Filling Department on January 31 was 2,600 units, 10% 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.
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 January for direct materials and conversion costs. If required, round your answers to two decimal places.
Work in Process—Filling Department (2,300 units, 60% completed): Direct materials (2,300 x $17.3) $39,790 Conversion (2,300 x 60% x $11.3) 15,594 $55,384Explanation / Answer
UNITS
$
UNITS
$
B/F
Direct materials (2,300 x $17.3)
2,300 units, 60%
$39,790
Transferred to FG
29,400 units
807,710
Conversion (2,300 x 60% x $11.3)
15,594
WIP
2600
10% X
83592
Direct materials transferred from Reaction
Department: 29,700 units at $17.1 a unit
29,700
$507,870
Direct labor
167,300
Factory overhead
160,748
32000
891,302
32000
891,302
2. Journalize the entries for (1) costs transferred from Reaction to Filling and (2) the cost transferred from Filling to Finished Goods.
DEBIT
CREDIT
(1)
Work in Process-Filling Department
835,920
Work in Process-Reaction Department
835,920
(2)
Finished Goods
807,710
Work in Process-Filling Department
807,710
3. Determine the increase or decrease in the cost per equivalent unit from November to January for direct materials and conversion costs. If required, round your answers to two decimal places.
Increase or Decrease
Amount
Change in direct materials cost per equivalent unit
$39790+507870/2300+29700
Decrease
$0 /185625 cents
Change in conversion cost per equivalent unit
15594 + 328048/1380+ 29700 = $11.05
Increase
$0. /25 cents
UNITS
$
UNITS
$
B/F
Direct materials (2,300 x $17.3)
2,300 units, 60%
$39,790
Transferred to FG
29,400 units
807,710
Conversion (2,300 x 60% x $11.3)
15,594
WIP
2600
10% X
83592
Direct materials transferred from Reaction
Department: 29,700 units at $17.1 a unit
29,700
$507,870
Direct labor
167,300
Factory overhead
160,748
32000
891,302
32000
891,302
UNITS
$
UNITS
$
B/F
Direct materials (2,300 x $17.3)
2,300 units, 60%
$39,790
Transferred to FG
29,400 units
807,710
Conversion (2,300 x 60% x $11.3)
15,594
WIP
2600
10% X
83592
Direct materials transferred from Reaction
Department: 29,700 units at $17.1 a unit
29,700
$507,870
Direct labor
167,300
Factory overhead
160,748
32000
891,302
32000
891,302
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