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 ProcessFilling was as follows on January 1: The following costs were charged to Work in ProcessFilling during January: During January, 23,000 units of specialty chemicals were completed. Work in ProcessFilling Department on January 31 was 2,000 units, 10% 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 the nearest cent. Feedback Area 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. 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. Accounts PayableFactory Overhead-Filling DepartmentFinished GoodsMaterialsWork in Process-Filling DepartmentWork in Process-Reaction Department Accounts PayableFactory Overhead-Filling DepartmentFinished GoodsMaterialsWork in Process-Filling DepartmentWork in Process-Reaction Department Cost of Goods SoldFactory Overhead-Filling DepartmentFinished GoodsMaterialsWork in Process-Filling DepartmentWork in Process-Reaction Department Cost of Goods SoldFactory Overhead-Filling DepartmentFinished GoodsMaterialsWork in Process-Filling DepartmentWork in Process-Reaction Department Feedback Area 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? 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. DecreaseIncrease DecreaseIncrease 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 Direct MaterialsWork in Process and Cost of Goods SoldFinished Goods . The report can also be used to control costs by holding each department head responsible for the units entering production and the costs incurred in the department. Any differences in unit product costs from one month to another, such as those in part (3), can be studied carefully and .

1. 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 ProcessFilling was as follows on January 1:
The following costs were charged to Work in ProcessFilling during January:
During January, 23,000 units of specialty chemicals were completed. Work in ProcessFilling
Department on January 31 was 2,000 units, 10% 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 the nearest cent.
Feedback Area
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.
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.
Accounts PayableFactory Overhead-Filling DepartmentFinished GoodsMaterialsWork in
Process-Filling DepartmentWork in Process-Reaction Department
Accounts PayableFactory Overhead-Filling DepartmentFinished GoodsMaterialsWork in
Process-Filling DepartmentWork in Process-Reaction Department
Cost of Goods SoldFactory Overhead-Filling DepartmentFinished GoodsMaterialsWork in
Process-Filling DepartmentWork in Process-Reaction Department
Cost of Goods SoldFactory Overhead-Filling DepartmentFinished GoodsMaterialsWork in
Process-Filling DepartmentWork in Process-Reaction Department
Feedback Area
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

2. or are they being transferred to another 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.
DecreaseIncrease
DecreaseIncrease
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
Direct MaterialsWork in Process
and
Cost of Goods SoldFinished Goods
. The report can also be used to control costs by holding each department head responsible for
the units entering production and the costs incurred in the department. Any differences in unit
product costs from one month to another, such as those in part (3), can be studied carefully and
any significant differences investigated.
Feedback Area
Work in ProcessFilling Department
(1,800 units, 30% completed):Line Item DescriptionAmount Direct materials (1,800
$13.70)$24,660 Conversion (1,800 30% $8.90)4,806Total$29,466