Practice Problem 20-2b

Bavarian Chocolate company processes chocaolate into candy bars. The Process begins by placing direct materials (raw chocolate, milk, and surger) Into blending department. All materials are placed into production at the beginning of the blending process. After blending, the milk chocolate is then transfered to the molding department, where milk chocolate is formed into candy bars. The following is a partial work in process account of the blending department at October 31 2016:

Date

Date	Item	Debit	Credit	Balance
Oct 1	Bal., 2,300 Units, 3/5 Completed			46,368
Oct 31	Direct Materials, 26,000 Units	429,000		475,368
Oct 31	Direct Labor	100,560		575,928
Oct 31	Factory Overhead	48,480		624,408
Oct 31	Goods transferred 25,700 Units		?

Oct 31 Bal ,. ? Units, 1/5 completed ?

1)Prepare a cost of production report, and identify the missing amounts for work in process-blending department

2)Assuming that the october 1 work in process inventory incudes direct materials of 38,295, determine the increase and decrease in the cost per equivlent unit for direct materials and conversion between september and October