Equivalent units and related costs; cost of production report;

Equivalent Units and Related Costs; Cost of Production Report; Entries

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Wilmington 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 December 1, 2012:

Work in Process—Filling Department

 

(2,500 units, 70% completed):

 

 

Direct materials (2,500 x $18.50)

$46,250

 

Conversion (2,500 x 70% x $12.10)

21,175

 

$67,425

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

Direct materials transferred from Reaction

 

 

Department: 32,300 units at $18.30 a unit

$591,090

Direct labor

191,510

Factory overhead

184,009

     

During December, 32,000 units of specialty chemicals were completed. Work in Process—Filling Department on December 31 was 2,800 units, 10% completed.

Instructions: 1.  Prepare a cost of production report for the Filling Department for December. If an amount is zero, enter “0”. If required, round your cost per equivalent unit answers to two decimal places. 

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