Equivalent Units and Related Costs; Cost of Production Report; Entries Wilmingto
ID: 2455166 • 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:
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
$31,536
The following costs were charged to Work in Process—Filling during December:
Direct materials transferred from Reaction
Department: 23,200 units at $12.40 a unit
$287,680
Direct labor
97,620
Factory overhead
93,800
During December, 23,000 units of specialty chemicals were completed. Work in Process—Filling Department on December 31 was 2,000 units, 30% completed.
Required:
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
1.
Units to be assigned costs: Equivalent Units
COST INFORMATION:
COST PER EQUIVALENT UNIT:
COSTS CHARGED TO PRODUCTION:
Cost allocated to completed and partially completed units:
2.Journalize the entries for (1) costs transferred from Reaction to Filling and (2) the cost transferred from Filling to Finished Goods.
(1)
(2)
3. Determine the increase or decrease in the cost per equivalent unit from November to December for direct materials and conversion cost. 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
$31,536
Explanation / Answer
1) Units charged to production
Units to be assigned with
COST INFORMATION
Cost per equivalent units
Cost Charged to production
$510,636
cost allocated to complteed and partially complated units
Inventory in process , December 1 1,800 Recieved from Reaction Department 23,200 total units accounted for by the filling department 25,000Related Questions
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