eBook Print Item Cost of Production Report nto candy bars. The process begins by

Question

eBook Print Item Cost of Production Report nto candy bars. The process begins by placing direct materials (raw chocolate, milk, and sugar) into the Blending Department. A 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 chocolate is formed into candy bars. The following is a partial blending, the milk chocolate is then transferred to the Molding Department, where the milk 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 Mar. 1 Bal., 4,400 units, 2/5 completed 31 Direct materials, 176,000 units 31 Direct labor 31 Factory overhead 31 Goods transferred, 177,000 units 31 Bal., ? units, 3/5 completed 12,408 470,008 569,308 594,104 457,600 99,300 24,796 Required: 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 Venus Chocolate Comparry Cost of Production Report-Blending Department For the Month Ended March 31, 2016 Unit Information Previous Next Check My Work more Check My Work uses remaining All work saved Email instructor love and Ent Submit Assignment for Gra

Explanation / Answer

Solution:

1) Preparing a Cost of Production Report and identifying the Missing Amounts for Work in Process - Blending Department:

VENUS CHOCOLATE COMPANY

Cost of Production Report - Blending Department

For the Month Ended March 31, 2016

2) Determining the Increase or Decrease in the Cost Per Equivalent Unit for Direct Materials and Conversion between February and March:

Computations:

Direct materials cost per equivalent unit: $2.50 ($11,000/4,400 units)

Conversion cost per equivalent unit: $0.80 ($1,408*/1,760 units**)

**Equivalent units in March 1, work in process (4,400 * 2/5) = 1,760 units

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 4,400 Received from materials storeroom 176,000 Total units accounted for by the Blending Department 180,400 Units to be assigned cost: Equivalent Units Whole Units Direct Materials Conversion Inventory in process, March 1 (2/5 Completed) 4,400 - 2,640 Started and completed in March 172,600 172,600 172,600 Transferred to Molding Department in March 177,000 172,600 175,240 Inventory in process, March 31 (3/5 Completed) 3,400 3,400 2,040 Total units to be assigned cost 180,400 176,000 177,280 Cost Information Cost Per Equivalent Unit: Total costs for March in Blending Department $457,600 $124,096 Total equivalent units 176,000 177,280 Cost per equivalent unit $2.60 $0.70 Costs charged to production: Direct Materials Conversion Total Inventory in process, March 1 $12,408 Costs incurred in March $581,696 Total costs accounted for by the Blending Department $594,104 Costs allocated to completed and partially completed units: Inventory in process, March 1 balance $12,408 To complete inventory in process, March 1 $1,848 $1,848 Cost of completed March 1 work inprocess $14,256 Started and completed in March $448,760 $120,820 $569,580 Transferred to Molding Department in March $583,836 Inventory in process, March 31 $8,840 $1,428 $10,268 Total costs assigned by the Blending Department $594,104

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