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: Work in Process—Filling Department (4,000 units, 70% completed): Direct materials (4,000 x $12.50) $50,000 Conversion (4,000 x 70% x $8.10) 22,680 $72,680 The following costs were charged to Work in Process—Filling during January: Direct materials transferred from Reaction Department: 51,600 units at $12.30 a unit $634,680 Direct labor 215,540 Factory overhead 207,080 During January, 51,200 units of specialty chemicals were completed. Work in Process—Filling Department on January 31 was 4,400 units, 30% completed. Required: Question Content Area 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. Dover Chemical Company Cost of Production Report-Filling Department For the Month Ended January 31 Unit Information Units charged to production:Number of Units Inventory in process, January 1 fill in the blank c6ab1efbff87fb7_1 Received from Reaction Department fill in the blank c6ab1efbff87fb7_2 Total units accounted for by the Filling Department fill in the blank c6ab1efbff87fb7_3 Units to be assigned costs: Equivalent Units Whole Units Direct Materials Conversion Inventory in process, January 1 fill in the blank c6ab1efbff87fb7_4 fill in the blank c6ab1efbff87fb7_5 fill in the blank c6ab1efbff87fb7_6 Started and completed in January fill in the blank c6ab1efbff87fb7_7 fill in the blank c6ab1efbff87fb7_8 fill in the blank c6ab1efbff87fb7_9 Transferred to finished goods in January fill in the blank c6ab1efbff87fb7_10 fill in the blank c6ab1efbff87fb7_11 fill in the blank c6ab1efbff87fb7_12 Inventory in process, January 31 fill in the blank c6ab1efbff87fb7_13 fill in the blank c6ab1efbff87fb7_14 fill in the blank c6ab1efbff87fb7_15 Total units to be assigned costs fill in the blank c6ab1efbff87fb7_16 fill in the blank c6ab1efbff87fb7_17 fill in the blank c6ab1efbff87fb7_18 Cost Information Cost per equivalent unit: Direct Materials Conversion Total costs for January in Filling Department $fill in the blank c6ab1efbff87fb7_19 $fill in the blank c6ab1efbff87fb7_20 Total equivalent units fill in the blank c6ab1efbff87fb7_21 fill in the blank c6ab1efbff87fb7_22 Cost per equivalent unit $fill in the blank c6ab1efbff87fb7_23 $fill in the blank c6ab1efbff87fb7_24 Costs assigned to production: Direct Materials Conversion Total Inventory in process, January 1 $fill in the blank c6ab1efbff87fb7_25 Costs incurred in January fill in the blank c6ab1efbff87fb7_26 Total costs accounted for by the Filling Department $fill in the blank c6ab1efbff87fb7_27 Costs allocated to completed and partially completed units: Inventory in process, January 1 balance $fill in the blank c6ab1efbff87fb7_28 To complete inventory in process, January 1 $fill in the blank c6ab1efbff87fb7_29 fill in the blank c6ab1efbff87fb7_30 Cost of completed January 1 work in process $fill in the blank c6ab1efbff87fb7_31 Started and completed in January $fill in the blank c6ab1efbff87fb7_32 fill in the blank c6ab1efbff87fb7_33 fill in the blank c6ab1efbff87fb7_34 Transferred to finished goods in January $fill in the blank c6ab1efbff87fb7_35 Inventory in process, January 31 fill in the blank c6ab1efbff87fb7_36 fill in the blank c6ab1efbff87fb7_37 fill in the blank c6ab1efbff87fb7_38 Total costs assigned by the Filling Department $fill in the blank c6ab1efbff87fb7_39 Question Content Area 2. Journalize the entries for (1) costs transferred from Reaction to Filling and (2) the cost transferred from Filling to Finished Goods. If an amount box does not require an entry, leave it blank. (1) Work in Process-Filling Department Work in Process-Filling Department Work in Process-Filling Department 465,560 Work in Process-Reaction Department Work in Process-Reaction Department 465,560 Work in Process-Reaction Department (2) Finished Goods Finished Goods Finished Goods 784,630 Work in Process-Filling Department Work in Process-Filling Department 784,630 Work in Process-Filling Department Question Content Area 3. Determine the increase or decrease in the cost per equivalent unit from December 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 $fill in the blank 0087cafe306301a_2 Change in conversion cost per equivalent unit Increase $fill in the blank 0087cafe306301a_4 0.40
Process Costing
Process costing is a sort of operation costing which is employed to determine the value of a product at each process or stage of producing process, applicable where goods produced from a series of continuous operations or procedure.
Job Costing
Job costing is adhesive costs of each and every job involved in the production processes. It is an accounting measure. It is a method which determines the cost of specific jobs, which are performed according to the consumer’s specifications. Job costing is possible only in businesses where the production is done as per the customer’s requirement. For example, some customers order to manufacture furniture as per their needs.
ABC Costing
Cost Accounting is a form of managerial accounting that helps the company in assessing the total variable cost so as to compute the cost of production. Cost accounting is generally used by the management so as to ensure better decision-making. In comparison to financial accounting, cost accounting has to follow a set standard ad can be used flexibly by the management as per their needs. The types of Cost Accounting include – Lean Accounting, Standard Costing, Marginal Costing and Activity Based Costing.
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:
Work in Process—Filling Department
(4,000 units, 70% completed):
Direct materials (4,000 x $12.50) $50,000
Conversion (4,000 x 70% x $8.10) 22,680
$72,680
The following costs were charged to Work in Process—Filling during January:
Direct materials transferred from Reaction
Department: 51,600 units at $12.30 a unit $634,680
Direct labor 215,540
Factory
During January, 51,200 units of specialty chemicals were completed. Work in Process—Filling Department on January 31 was 4,400 units, 30% completed.
Required:
Question Content Area
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.
Dover Chemical Company
Cost of Production Report-Filling Department
For the Month Ended January 31
Unit Information
Units charged to production:Number of Units
Inventory in process, January 1 fill in the blank c6ab1efbff87fb7_1
Received from Reaction Department fill in the blank c6ab1efbff87fb7_2
Total units accounted for by the Filling Department fill in the blank c6ab1efbff87fb7_3
Units to be assigned costs: Equivalent Units
Whole Units Direct Materials Conversion
Inventory in process, January 1 fill in the blank c6ab1efbff87fb7_4
fill in the blank c6ab1efbff87fb7_5
fill in the blank c6ab1efbff87fb7_6
Started and completed in January fill in the blank c6ab1efbff87fb7_7
fill in the blank c6ab1efbff87fb7_8
fill in the blank c6ab1efbff87fb7_9
Transferred to finished goods in January fill in the blank c6ab1efbff87fb7_10
fill in the blank c6ab1efbff87fb7_11
fill in the blank c6ab1efbff87fb7_12
Inventory in process, January 31 fill in the blank c6ab1efbff87fb7_13
fill in the blank c6ab1efbff87fb7_14
fill in the blank c6ab1efbff87fb7_15
Total units to be assigned costs fill in the blank c6ab1efbff87fb7_16
fill in the blank c6ab1efbff87fb7_17
fill in the blank c6ab1efbff87fb7_18
Cost Information
Cost per equivalent unit: Direct Materials Conversion
Total costs for January in Filling Department $fill in the blank c6ab1efbff87fb7_19
$fill in the blank c6ab1efbff87fb7_20
Total equivalent units fill in the blank c6ab1efbff87fb7_21
fill in the blank c6ab1efbff87fb7_22
Cost per equivalent unit $fill in the blank c6ab1efbff87fb7_23
$fill in the blank c6ab1efbff87fb7_24
Costs assigned to production:
Direct Materials Conversion Total
Inventory in process, January 1 $fill in the blank c6ab1efbff87fb7_25
Costs incurred in January fill in the blank c6ab1efbff87fb7_26
Total costs accounted for by the Filling Department $fill in the blank c6ab1efbff87fb7_27
Costs allocated to completed and partially completed units:
Inventory in process, January 1 balance $fill in the blank c6ab1efbff87fb7_28
To complete inventory in process, January 1 $fill in the blank c6ab1efbff87fb7_29
fill in the blank c6ab1efbff87fb7_30
Cost of completed January 1 work in process $fill in the blank c6ab1efbff87fb7_31
Started and completed in January $fill in the blank c6ab1efbff87fb7_32
fill in the blank c6ab1efbff87fb7_33
fill in the blank c6ab1efbff87fb7_34
Transferred to finished goods in January $fill in the blank c6ab1efbff87fb7_35
Inventory in process, January 31 fill in the blank c6ab1efbff87fb7_36
fill in the blank c6ab1efbff87fb7_37
fill in the blank c6ab1efbff87fb7_38
Total costs assigned by the Filling Department $fill in the blank c6ab1efbff87fb7_39
Question Content Area
2.
(1)
Work in Process-Filling Department
Work in Process-Filling Department
Work in Process-Filling Department
465,560
Work in Process-Reaction Department
Work in Process-Reaction Department
465,560
Work in Process-Reaction Department
(2)
Finished Goods
Finished Goods
Finished Goods
784,630
Work in Process-Filling Department
Work in Process-Filling Department
784,630
Work in Process-Filling Department
Question Content Area
3. Determine the increase or decrease in the cost per equivalent unit from December 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
$fill in the blank 0087cafe306301a_2
Change in conversion cost per equivalent unit
Increase
$fill in the blank 0087cafe306301a_4
0.40
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