Venus Chocolate Company processes chocolate into candy bars. The process begins
ID: 2466185 • 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., 6,100 units, 2/5 completed 17,812 31 Direct materials, 244,000 units 658,800 676,612 31 Direct labor 136,400 813,012 31 Factory overhead 34,106 847,118 31 Goods transferred, 245,000 units ? 31 Bal., ? units, 1/5 completed ?Explanation / Answer
Answer:
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 6100 Received from materials storeroom 244000 Total units accounted for by the Blending Department 250100 Units to be assigned costs: Equivalent Units Whole Units Direct Materials Conversion Inventory in process, March 1 6100 3660 Started and completed in March 238900 238900 238900 Transferred to Molding Department in March 245000 238900 242560 Inventory in process, March 31 5100 5100 1020 Total units to be assigned costs 250100 244000 243580 Cost Information Costs per equivalent unit: Direct Materials Conversion Total costs for March in Blending Department 658800 170506 Total equivalent units 244000 243580 Cost per equivalent unit 2.7 0.7 Costs charged to production: Direct Materials Conversion Total Inventory in process, March 1 17812 Costs incurred in March 829306 Total costs accounted for by the Blending Department 847118 Cost allocated to completed and partially completed units: Inventory in process, March 1 balance 17812 To complete inventory in process, March 1 2562 2562 Cost of completed March 1 work in process 20374 Started and completed in March 645030 167230 812260 Transferred to Molding Department in March 832634 Inventory in process, March 31 13770 714 14484 Total costs assigned by the Blending Department 847118Related Questions
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