Financial and Managerial Accounting: PR18(03)-2A Venus Chocolate Company processes chocolate

Financial and Managerial Accounting (Warren)

Problem 18(03)-2A
Venus Chocolate Company processes chococate 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 a formed into candy bars. The following is a partial work in process account of the Blending Department at January 31, 2010.
Account: Work in Process - Blending Department Account No.
Balance
Date Item Debit Credit Debit Credit
Jan. 1 Bal., 6,000 units, 2/3 completed 21,840
Jan. 31 Direct materials, 240,000 units 768,000 789,840
Jan. 31 Direct labor 153,200 943,040
Jan. 31 Factory overhead 38,160 981,200
Jan. 31 Goods transferred, 242,000 units
Jan. 31 Bal., ___ units, 1/5 completed

Instructions:
1. Prepare a cost of production report, and identify the missing amounts for Work in Process - Blending Department. If an amount is zero, enter in a zero (0). When computing cost per equivalent units, round to two decimal places. For example, $8.347 would be entered as 8.35. Enter all amounts as positive numbers.
2. Assuming that the January 1 work in process inventory includes direct materials of $18,600, determine the increase or decrease in the cost per equivalent units for direct materials and conversion between December and January.
Round your answer to two decimal places. For example: 0.937 would be entered as 0.94. Enter all amounts as positive numbers.
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