Venus Chocolate Company processes chocolate into candy bars. The process begins
ID: 2339796 • 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, 2016:
Required:
1. Prepare a cost of production report, and identify the missing amounts for Work in Process—Blending Department. If an amount is zero, enter "0". When computing cost per equivalent units, round to two decimal places.
ACCOUNT Work in Process—Blending Department ACCOUNT NO. Date Item Debit Credit Balance Debit Credit Mar. 1 Bal., 7,600 units, 2/5 completed 23,712 31 Direct materials, 304,000 units 881,600 905,312 31 Direct labor 169,800 1,075,112 31 Factory overhead 42,496 1,117,608 31 Goods transferred, 305,000 units ? 31 Bal., ? units, 1/5 completed ?Explanation / Answer
Solution:
Venus Chocolate Company
Cost of Production Report-Blending Department
For the Month Ended March 31, 2016
Unit Information
Units charged to production:
Inventory in process, March 1
7600
Received from materials storeroom
304000
Total units accounted for by the Blending Department
311600
Units to be assigned costs:
Equivalent Units
Whole Units
Direct Materials
Conversion
Inventory in process, March 1 (3/5 Completed during the period)
7600
0
4560
Started and completed in March
297400
297400
297400
Transferred to Molding Department in March
305000
Inventory in process, March 31 (100% completed for material & 1/5 completed for conversion)
6600
6600
1320
Total units to be assigned costs
311600
304000
303280
Cost Information
Costs per equivalent unit:
Direct Materials
Conversion
Total costs for March in Blending Department
$881,600
$212,296
Total equivalent units
304000
303280
Cost per equivalent unit
$2.90
$0.70
Costs charged to production:
Direct Materials
Conversion
Total
Inventory in process, March 1
$23,712
Costs incurred in March
$881,600
$212,296
$1,093,896
Total costs accounted for by the Blending Department
$1,117,608
Cost allocated to completed and partially completed units:
Inventory in process, March 1 balance
$23,712
To complete inventory in process, March 1
$3,192
$3,192
Cost of completed March 1 work in process
$26,904
Started and completed in March
$862,460
$208,180
$1,070,640
Transferred to Molding Department in March
$1,097,544
Inventory in process, March 31
$19,140
$924
$20,064
Total costs assigned by the Blending Department
$1,117,608
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Venus Chocolate Company
Cost of Production Report-Blending Department
For the Month Ended March 31, 2016
Unit Information
Units charged to production:
Inventory in process, March 1
7600
Received from materials storeroom
304000
Total units accounted for by the Blending Department
311600
Units to be assigned costs:
Equivalent Units
Whole Units
Direct Materials
Conversion
Inventory in process, March 1 (3/5 Completed during the period)
7600
0
4560
Started and completed in March
297400
297400
297400
Transferred to Molding Department in March
305000
Inventory in process, March 31 (100% completed for material & 1/5 completed for conversion)
6600
6600
1320
Total units to be assigned costs
311600
304000
303280
Cost Information
Costs per equivalent unit:
Direct Materials
Conversion
Total costs for March in Blending Department
$881,600
$212,296
Total equivalent units
304000
303280
Cost per equivalent unit
$2.90
$0.70
Costs charged to production:
Direct Materials
Conversion
Total
Inventory in process, March 1
$23,712
Costs incurred in March
$881,600
$212,296
$1,093,896
Total costs accounted for by the Blending Department
$1,117,608
Cost allocated to completed and partially completed units:
Inventory in process, March 1 balance
$23,712
To complete inventory in process, March 1
$3,192
$3,192
Cost of completed March 1 work in process
$26,904
Started and completed in March
$862,460
$208,180
$1,070,640
Transferred to Molding Department in March
$1,097,544
Inventory in process, March 31
$19,140
$924
$20,064
Total costs assigned by the Blending Department
$1,117,608
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