Venus Chocolate Company processes chocolate into candy bars. The process begins

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: ACCOUNT Work in Process-Blending Department ACCOUNT NO Balance Date Item Debit Credit Debit Credit 10,626 441,826 515,926 534,466 Mar. 1 Bal., 7,700 units, 1/5 completed 431,200 74,100 18,540 31 Direct materials, 308,000 units 31 Direct labor 31 Factory overhead 31 Goods transferred, 309,000 units 31 Bal., ? units, 1/5 completed

Explanation / Answer

Cost of Production Report-Blending Department For the Month Ended March 31 Unit Information Units charged to production: Inventory in process, March 1 7700 Received from materials storeroom 308000 Total units accounted for by the Blending Department 315700 Units to be assigned costs: Equivalent Units Whole Units Direct Materials Conversion Inventory in process, March 1 7700 0 6160 Started and completed in March 301300 301300 301300 Transferred to Molding Department in March 309000 301300 307460 Inventory in process, March 31 6700 6700 1340 Total units to be assigned costs 315700 308000 308800 Cost Information Costs per equivalent unit: Direct Materials Conversion Total costs for March in Blending Department 431200 92640 Total equivalent units 308000 308800 Cost per equivalent unit 1.4 0.3 Costs charged to production: Direct Materials Conversion Total Inventory in process, March 1 10626 Costs incurred in March 523840 Total costs accounted for by the Blending Department 534466 Cost allocated to completed and partially completed units: Inventory in process, March 1 balance 10626 To complete inventory in process, March 1 0 1848 1848 Cost of completed March 1 work in process 12474 Started and completed in March 421820 90390 512210 Transferred to Molding Department in March 524684 Inventory in process, March 31 9380 402 9782 Total costs assigned by the Blending Department 534466 2 Increase or Decrease Amount Change in direct materials cost per equivalent unit Increase 0.1 Change in conversion cost per equivalent unit Decrease 0.1

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