PR $20-3$B Equivalent units and related costs; cost of production report; entries

Obj. $2,3,4$

Dover Chemical Company manufactures specialty chemicals by a series of three processes, all materials being introduced in

Excel 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 January $1$:

Work in Process$-$Filling Department

$(3,400$ units, $60\%$ completed$)$:

Direct materials $(3,40059\mathrm{.}58)$

$[$$$32,572],[7,956],[$$$40,528]$

Details

During January, $53,000$ units of specialty chemicals were completed. Work in ProcessFilling Department on January $31$ was $2,700$ units, $30\%$ completed.

Instructions

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

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

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