close solutoin list

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 paw through die 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 (3,400 units, 60% completed): Direct materials (3,400 × $9.58) $32,572 Conversion (3,400 x 60% × $3.90) 7,956 $40,528 The following costs were charged to Work in Process—Filling during January: Direct materials transferred from Reaction Department: 52,300 units at $950 a unit $496,850 Direct labor 101,560 Factory overhead 95,166 During January, 53,000 units of specialty chemicals were completed. Work in Process—Filling Department on January- 31 was 2,700 units, 30% completed. Instructions 1. Prepare a cost of production report for the Filling Department for January. 2. Journalize die entries for costs transferred from Reaction to Filling and the costs transferred from Filling to Finished Goods. 3. Determine the increase or decrease in the cost per equivalent unit from December to January for direct materials and conversion costs. 4. Discuss the uses of the cost of production report and the results of part (3).

BuyFind

Financial & Managerial Accounting

14th Edition
Carl Warren + 2 others
Publisher: Cengage Learning
ISBN: 9781337119207
BuyFind

Financial & Managerial Accounting

14th Edition
Carl Warren + 2 others
Publisher: Cengage Learning
ISBN: 9781337119207

Solutions

Chapter
Section
Chapter 17, Problem 17.3BPR
Textbook Problem

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 paw through die 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
(3,400 units, 60% completed):
Direct materials (3,400 × $9.58) $32,572
Conversion (3,400 x 60% × $3.90) 7,956
$40,528

The following costs were charged to Work in Process—Filling during January:

Direct materials transferred from Reaction
Department: 52,300 units at $950 a unit $496,850
Direct labor 101,560
Factory overhead 95,166

During January, 53,000 units of specialty chemicals were completed. Work in Process—Filling Department on January- 31 was 2,700 units, 30% completed.

Instructions

1. Prepare a cost of production report for the Filling Department for January.

2. Journalize die entries for costs transferred from Reaction to Filling and the costs transferred from Filling to Finished Goods.

3. Determine the increase or decrease in the cost per equivalent unit from December to January for direct materials and conversion costs.

4. Discuss the uses of the cost of production report and the results of part (3).

Expert Solution

Want to see this answer and more?

Experts are waiting 24/7 to provide step-by-step solutions in as fast as 30 minutes!*

See Solution

*Response times vary by subject and question complexity. Median response time is 34 minutes and may be longer for new subjects.

Chapter 17 Solutions

Financial & Managerial Accounting
Show all chapter solutions
Ch. 17 - Units to be assigned costs Oak Ridge Steel Company...Ch. 17 - Equivalent units of materials cost The Rolling...Ch. 17 - Equivalent units of conversion costs The Rolling...Ch. 17 - Cost per equivalent unit The cost of direct...Ch. 17 - Cost of units transferred out and ending work in...Ch. 17 - Process cost journal entries In July, the cost of...Ch. 17 - Analyzing changes in unit costs The Costs of...Ch. 17 - Entries for materials cost flows in a process cost...Ch. 17 - Flowchart of accounts related to service and...Ch. 17 - Entries for flow of factory costs for process cost...Ch. 17 - Factory overhead rate, entry for applying factory...Ch. 17 - Equivalent units of production The Converting...Ch. 17 - Equivalent units of production Units of production...Ch. 17 - Equivalent units of production The following...Ch. 17 - Costs per equivalent unit A. Based upon the data...Ch. 17 - Equivalent units of production Kellogg Company...Ch. 17 - Costs per equivalent unit Georgia Products Inc....Ch. 17 - Equivalent units of production and related costs...Ch. 17 - Cost of units completed and in process A. Based on...Ch. 17 - Errors in equivalent unit computation Napco...Ch. 17 - Cost per equivalent unit The following information...Ch. 17 - Costs per equivalent unit and production costs...Ch. 17 - Cost of production report The debits to Work in...Ch. 17 - Cost of production report The Cutting Department...Ch. 17 - Cost of production and journal entries AccuBlade...Ch. 17 - Cost of production and journal entries Lighthouse...Ch. 17 - Process costing for a service company Madison...Ch. 17 - Lean manufacturing The following are some quotes...Ch. 17 - Equivalent units of production: average cost...Ch. 17 - Equivalent units of production: average cost...Ch. 17 - Equivalent units of production: average cost...Ch. 17 - Equivalent units of production and related costs...Ch. 17 - Cost per equivalent unit: average cost method The...Ch. 17 - Cost of production report: average cost method The...Ch. 17 - Cost of production report: average cost method...Ch. 17 - Entries for process cost system Port Ormond Carpet...Ch. 17 - Cost of production report Hana Coffee Company...Ch. 17 - Equivalent units and related costs; cost of...Ch. 17 - Work in process account data for two months; cost...Ch. 17 - Cost of production report: average cost method...Ch. 17 - Entries for process cost system Preston Grover...Ch. 17 - Cost of production report Bavarian Chocolate...Ch. 17 - Equivalent units and related costs; cost of...Ch. 17 - Work in process account data for two months; cost...Ch. 17 - Cost of production report: average cost method...Ch. 17 - Analyzing process cost elements across product...Ch. 17 - Analyzing process cost elements over time Pix...Ch. 17 - Determining cost relationships Midsize Containers...Ch. 17 - Ethics in Action You arc the Cookie division...Ch. 17 - Communication Jamarcus Bradshaw, plant manager of...

Additional Business Textbook Solutions

Find more solutions based on key concepts
Show solutions
What are the different forms of compensation?

Foundations of Business (MindTap Course List)

How are inflation and unemployment related in the short run?

Principles of Economics (MindTap Course List)

What is the function of an income statement?

College Accounting, Chapters 1-27

Describe the elements of an e-mail address.

Accounting Information Systems

Why do U.S. corporations build manufacturing plants abroad when they can build them at home?

Fundamentals of Financial Management, Concise Edition (with Thomson ONE - Business School Edition, 1 term (6 months) Printed Access Card) (MindTap Course List)

If 1 equals 0.0093, what does 1 equal?

Economics (MindTap Course List)