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 (1,900 units, 80% completed): The following costs were charged to Work in Process-Filling during January: Direct materials transferred from Reaction 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. Costs \begin{tabular}{l} \hline Costs \\ \hline Cost per equivalent unit: \\ Total costs for January in Filling Department \\ Total equivalent units \\ Cost per equivalent unit \end{tabular} Costs assigned to production: Inventory in process, January 1 Costs incurred in January Total costs accounted for by the Filling Department Costs allocated to completed and partially completed units: Inventory in process, January 1 balance To complete inventory in process, January 1 Cost of completed January 1 work in process Started and completed in January Transferred to finished goods in January Inventory in process, January 31 Total costs assigned by the Filling Department 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. 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. 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 . 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..

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 Process-Filling was as follows on January 1 : Work in Process-Filling
Department (1,900 units, 80% completed): The following costs were charged to Work in
Process-Filling during January: Direct materials transferred from Reaction
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.
Costs begin{tabular}{l} hline Costs hline Cost per equivalent unit: Total costs for January
in Filling Department Total equivalent units Cost per equivalent unit end{tabular} Costs
assigned to production: Inventory in process, January 1 Costs incurred in January Total costs
accounted for by the Filling Department Costs allocated to completed and partially completed
units: Inventory in process, January 1 balance To complete inventory in process, January 1 Cost
of completed January 1 work in process Started and completed in January Transferred to finished
goods in January Inventory in process, January 31 Total costs assigned by the Filling Department
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. 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. 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 . 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.