ACCOUNT Work in Process-Blending Department ACCOUNT No. Balance Debit Credit Debit Credit Date Item Oct. 1 Bal., 2,300 units, /s completed 31 46,368 Direct materials, 26,000 units 31 31 429,000 100,560 48,480 475,368 575,928 624,408 Direct labor Factory overhead 31 Goods transferred, 25,700 units 31 Bal., 2 units, s completed

Managerial Accounting: The Cornerstone of Business Decision-Making
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Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Chapter6: Process Costing
Section: Chapter Questions
Problem 53E: Transferred-In Cost Goldings finishing department had the following data for July: Required: 1....
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Bavarian Chocolate Company processes chocolate into candy bars. The process begins by placing direct materials (raw chocolate, milk, and sugar) into the Blending Department. All materials are placed into production at the beginning of the blending process. After blending, the milk chocolate is then transferred to the Molding Department, where the milk chocolate is formed into candy bars. The following is a partial work in process account
of the Blending Department at October 31:
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Instructions
1. Prepare a cost of production report and identify the missing amounts for Work in Process—Blending Department.
2. Assuming that the October 1 work in process inventory includes direct materials of $38,295, determine the increase or decrease in the cost per equivalent unit for direct materials and conversion between September and October.

ACCOUNT Work in Process-Blending Department
ACCOUNT No.
Balance
Debit
Credit
Debit
Credit
Date
Item
Oct. 1
Bal., 2,300 units, /s completed
31
46,368
Direct materials, 26,000 units
31
31
429,000
100,560
48,480
475,368
575,928
624,408
Direct labor
Factory overhead
31
Goods transferred, 25,700 units
31
Bal., 2 units, s completed
Transcribed Image Text:ACCOUNT Work in Process-Blending Department ACCOUNT No. Balance Debit Credit Debit Credit Date Item Oct. 1 Bal., 2,300 units, /s completed 31 46,368 Direct materials, 26,000 units 31 31 429,000 100,560 48,480 475,368 575,928 624,408 Direct labor Factory overhead 31 Goods transferred, 25,700 units 31 Bal., 2 units, s completed
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