Venus Chocolate Company processes chocolate into 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 is formed into candy bars. The following is a partial work in process account of the Blending Department at January 31, 2010:

Instructions
1. Prepare a cost of production report, and identify the missing amounts for Work in Process€” lending Department.
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 unit for direct materials and conversion between December andJanuary.

Transcribed Image Text:

ACCOUNT Work in Process-Blending Department ACCOUNT NO. Balance Item Debit Credit Debit Date Credit 1 Bal., 6,000 units, % completed 21,840 789,840 943,040 981,200 Jan. 31 Direct materials, 240,000 units 31 Direct labor 31 Factory overhead 31 Goods transferred, 242,000 units 31 Bal., Z units, % completed 768,000 153,200 38,160