Meadowland chemical company _Costing
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
Direct materials(2,500 x
Conversion (2,500 x 60%
x 5.65) 41,225
The following cost were
charged to work in process Filling during December:
transferred from reaction
Department: 42,100 units
at $13.00 a unit $547,300
Direct labor 143,200
Factory overhead 79,605
During December, 40,900
units of specialty chemicals were completed. Work in process Filling Department
on December 31 was 3,700 units, 30% completed
1.) Prepare a cost of
production report for the Filling Department of December.
2.) Journalize the
entries for costs transferred from Reaction to Filling and the cost transferred
from Filling to Finished goods.
3.) Determine the
increase or decrease in the cost per equivalent unit from November to December
for Direct materials and conversion costs.
4.) Discuss the uses of
the cost of production report and the results of part (3)
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