CH. 17 TMM.17-1 TMM.17-APP EX.17-01 EX.17-05.ALGO EX.17-06.ALGO EX.17-10.ALGO PR
ID: 2602565 • Letter: C
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CH. 17
TMM.17-1
TMM.17-APP
EX.17-01
EX.17-05.ALGO
EX.17-06.ALGO
EX.17-10.ALGO
PR.17-03B.ALGO
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Equivalent Units and Related Costs; Cost of Production Report; Entries
Dover 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 January 1:
The following costs were charged to Work in Process—Filling during January:
During January, 29,400 units of specialty chemicals were completed. Work in Process—Filling Department on January 31 was 2,600 units, 10% completed.
Required:
1. Prepare a cost of production report for the Filling Department for January. If an amount is zero, enter "0". If required, round your cost per equivalent unit answers to two decimal places.
Feedback
1. Calculate equivalent units for materials and conversion costs. Calculate the cost per equivalent unit for materials and conversion costs. Calculate the costs assigned to the beginning inventory, the units started and completed, and the ending inventory.
2. Journalize the entries for (1) costs transferred from Reaction to Filling and (2) the cost transferred from Filling to Finished Goods.
Feedback
2. Remember that there are three types of inventory; materials, work in process, and finished goods. What costs are captured in the work in process account? Are these units 100% complete or are they being transferred to another department?
3. Determine the increase or decrease in the cost per equivalent unit from November to January for direct materials and conversion costs. If required, round your answers to two decimal places.
Work in Process—Filling Department (2,300 units, 60% completed): Direct materials (2,300 x $17.3) $39,790 Conversion (2,300 x 60% x $11.3) 15,594 $55,384Explanation / Answer
1.Production report:
Dover Chemical Company
Cost of Production Report-Filling Department
For the Month Ended January 31
Unit Information
Units charged to production:
Inventory in process, January 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, January 1
2,300
Received from Reaction Department
29,700
Total units accounted for by the Filling Department
32,000
Inventory in process, January 31 (60% completed)
2,300
-
(2,300* 40%)
=920
Started and completed in January
27,100
27,100
27,100
Transferred to finished goods in January
29,400
27,100
28,020
Inventory in process, January 31 (10% completed)
2,600
2,600
260
Total units to be assigned costs
32,000
29,700
28,280
Cost Information
Costs per equivalent unit:
Direct Materials
Conversion
Total costs for January in Filling Department
$
$
Department
507,870
328,048
Total equivalent units
29,700
28,280
Cost per equivalent unit = cost / total equivalent units
17.10
11.60
Costs charged to production:
Direct Materials
Conversion
Total
Inventory in process, January 1
55,384
Costs incurred in January
835,918
Total costs accounted for by the Filling Department
891,302
Cost allocated to completed and partially completed units:
Inventory in process, January 1 balance
55,384
To complete inventory in process, January 1
-
(920*11.60)
= 10,672
10,672
Cost of completed January 1 work in process
66,056
Started and completed in January
(27,100*17.1) =463,410
(27,100*11.6)= 314,360
777,770
Transferred to finished goods in January
843,826
Inventory in process, January 31
(2,600*17.10)= 44,460
(2,600*11.60) = 30,160
74,620
Total costs assigned by the Filling Department
918,466
2. Journalize the entries for (1) costs transferred from Reaction to Filling and (2) the cost transferred from Filling to Finished Goods.
(1)
Work in Process-Filling Department
507,870
Work in Process-Reaction Department
507,870
(2)
Finished Goods
843,826
Work in Process-Filling Department
843,826
3. Determine the increase or decrease in the cost per equivalent unit from November to January for direct materials and conversion costs. If required, round your answers to two decimal places.
Increase or Decrease
Amount
Change in direct materials cost per equivalent unit
Decrease
(17.30-17.10) =
-$0.20
Change in conversion cost per equivalent unit
Increase
(11.3-11.6) = $0.30
Dover Chemical Company
Cost of Production Report-Filling Department
For the Month Ended January 31
Unit Information
Units charged to production:
Inventory in process, January 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, January 1
2,300
Received from Reaction Department
29,700
Total units accounted for by the Filling Department
32,000
Inventory in process, January 31 (60% completed)
2,300
-
(2,300* 40%)
=920
Started and completed in January
27,100
27,100
27,100
Transferred to finished goods in January
29,400
27,100
28,020
Inventory in process, January 31 (10% completed)
2,600
2,600
260
Total units to be assigned costs
32,000
29,700
28,280
Cost Information
Costs per equivalent unit:
Direct Materials
Conversion
Total costs for January in Filling Department
$
$
Department
507,870
328,048
Total equivalent units
29,700
28,280
Cost per equivalent unit = cost / total equivalent units
17.10
11.60
Costs charged to production:
Direct Materials
Conversion
Total
Inventory in process, January 1
55,384
Costs incurred in January
835,918
Total costs accounted for by the Filling Department
891,302
Cost allocated to completed and partially completed units:
Inventory in process, January 1 balance
55,384
To complete inventory in process, January 1
-
(920*11.60)
= 10,672
10,672
Cost of completed January 1 work in process
66,056
Started and completed in January
(27,100*17.1) =463,410
(27,100*11.6)= 314,360
777,770
Transferred to finished goods in January
843,826
Inventory in process, January 31
(2,600*17.10)= 44,460
(2,600*11.60) = 30,160
74,620
Total costs assigned by the Filling Department
918,466
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