quivalent 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: Work in Process—Filling Department (3,500 units, 40% completed): Direct materials (3,500 x $10.70) $37,450 Conversion (3,500 x 40% x $6.90) 9,660 $47,110 The following costs were charged to Work in Process—Filling during January: Direct materials transferred from Reaction Department: 45,200 units at $10.50 a unit $474,600 Direct labor 160,800 Factory overhead 154,488 During January, 44,800 units of specialty chemicals were completed. Work in Process—Filling Department on January 31 was 3,900 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 decim
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.
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:
| Work in Process—Filling Department | ||
| (3,500 units, 40% completed): | ||
| Direct materials (3,500 x $10.70) | $37,450 | |
| Conversion (3,500 x 40% x $6.90) | 9,660 | |
| $47,110 |
The following costs were charged to Work in Process—Filling during January:
| Direct materials transferred from Reaction | ||
| Department: 45,200 units at $10.50 a unit | $474,600 | |
| Direct labor | 160,800 | |
| Factory |
154,488 |
During January, 44,800 units of specialty chemicals were completed. Work in Process—Filling Department on January 31 was 3,900 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.
| 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 | fill in the blank 0cf6b2f84ffdf98_1 | ||
| Received from Reaction Department | fill in the blank 0cf6b2f84ffdf98_2 | ||
| Total units accounted for by the Filling Department | fill in the blank 0cf6b2f84ffdf98_3 | ||
| Units to be assigned costs: | |||
| Equivalent Units | |||
| Whole Units | Direct Materials | Conversion | |
| Inventory in process, January 1 | fill in the blank 0cf6b2f84ffdf98_4 | fill in the blank 0cf6b2f84ffdf98_5 | fill in the blank 0cf6b2f84ffdf98_6 |
| Started and completed in January | fill in the blank 0cf6b2f84ffdf98_7 | fill in the blank 0cf6b2f84ffdf98_8 | fill in the blank 0cf6b2f84ffdf98_9 |
| Transferred to finished goods in January | fill in the blank 0cf6b2f84ffdf98_10 | fill in the blank 0cf6b2f84ffdf98_11 | fill in the blank 0cf6b2f84ffdf98_12 |
| Inventory in process, January 31 | fill in the blank 0cf6b2f84ffdf98_13 | fill in the blank 0cf6b2f84ffdf98_14 | fill in the blank 0cf6b2f84ffdf98_15 |
| Total units to be assigned costs | fill in the blank 0cf6b2f84ffdf98_16 | fill in the blank 0cf6b2f84ffdf98_17 | fill in the blank 0cf6b2f84ffdf98_18 |
| Cost Information | |||
| Cost per equivalent unit: | |||
| Direct Materials | Conversion | ||
| Total costs for January in Filling Department | $fill in the blank 0cf6b2f84ffdf98_19 | $fill in the blank 0cf6b2f84ffdf98_20 | |
| Total equivalent units | fill in the blank 0cf6b2f84ffdf98_21 | fill in the blank 0cf6b2f84ffdf98_22 | |
| Cost per equivalent unit | $fill in the blank 0cf6b2f84ffdf98_23 | $fill in the blank 0cf6b2f84ffdf98_24 | |
| Costs assigned to production: | |||
| Direct Materials | Conversion | Total | |
| Inventory in process, January 1 | $fill in the blank 0cf6b2f84ffdf98_25 | ||
| Costs incurred in January | fill in the blank 0cf6b2f84ffdf98_26 | ||
| Total costs accounted for by the Filling Department | $fill in the blank 0cf6b2f84ffdf98_27 | ||
| Costs allocated to completed and partially completed units: | |||
| Inventory in process, January 1 balance | $fill in the blank 0cf6b2f84ffdf98_28 | ||
| To complete inventory in process, January 1 | $fill in the blank 0cf6b2f84ffdf98_29 | fill in the blank 0cf6b2f84ffdf98_30 | |
| Cost of completed January 1 work in process | $fill in the blank 0cf6b2f84ffdf98_31 | ||
| Started and completed in January | $fill in the blank 0cf6b2f84ffdf98_32 | fill in the blank 0cf6b2f84ffdf98_33 | fill in the blank 0cf6b2f84ffdf98_34 |
| Transferred to finished goods in January | $fill in the blank 0cf6b2f84ffdf98_35 | ||
| Inventory in process, January 31 | fill in the blank 0cf6b2f84ffdf98_36 | fill in the blank 0cf6b2f84ffdf98_37 | fill in the blank 0cf6b2f84ffdf98_38 |
| Total costs assigned by the Filling Department | $fill in the blank 0cf6b2f84ffdf98_39 |
2.
| (1) |
|
- Select - | - Select - |
|
|
- Select - | - Select - | |
| (2) |
|
- Select - | - Select - |
|
|
- Select - | - Select - |
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 |
|
$fill in the blank 2cefd200cfd2079_2 |
| Change in conversion cost per equivalent unit |
|
$fill in the blank 2cefd200cfd2079_4 |
4. Discuss the uses of the cost of production report and the results of part (3).
The cost of production report may be used as the basis for allocating product costs between
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