Equivalent Units and Related Costs; Cost of Production Report; Entries Wilmingto

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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.

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 charged to production:                              Inventory in process, December 1                Received from Reaction Department          Total units accounted for by the Filling Department         

Units to be assigned costs:                                                    Equivalent Units

                       Whole Units          Direct Materials Conversion Inventory in process, December 1     Started and completed in December          Transferred to finished goods in December          Inventory in process, December 31          Total units to be assigned costs         

                                          COST INFORMATION:

COST PER EQUIVALENT UNIT:

                                                                  Direct Materials                     Conversion               Total costs for December in Filling Department                                                Total equivalent units          Cost per equivalent unit         

COSTS CHARGED TO PRODUCTION:

               Direct Materials Conversion                 Total     Inventory in process,December 1 Costs incurred in December          Total costs accounted for by the Filling Department         

Cost allocated to completed and partially completed units:

Direct Materials Conversion Total Inventory in process,December 1 balance                                                                                                     To complete inventory in process, December 1 Cost of completedDecember 1 work in process                                                               Started and completed in December Transferred to finished goods in December           Inventory in process,December 31 Total costs assigned by the Filling Department                                                               

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.

Increase or Decrease Amount      Change in direct materials cost per equivalent unit Change in conversion cost per quivalent unit

Explanation / Answer

1.

UNITS TO BE ASSIGNED COSTS:

COST PER EQUIVALENT UNIT:

COST CHARGED TO PRODUCTION:

2.

Journal Entries:

3.

Units charged to producton:      Opening WIP 1800      Received from reaction department 23200 Total Units to be accounted for by the Filing Department 25000

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