Cost of Production Report Venus Chocolate Company processes chocolate into candy
ID: 2520300 • Letter: C
Question
Cost of Production Report
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 March 31, 2016:
Required:
1. Prepare a cost of production report, and identify the missing amounts for Work in Process—Blending Department. If an amount is zero, enter "0". When computing The rate used to allocate costs between completed and partially completed production.cost per equivalent units, round to two decimal places.
ACCOUNT Work in Process—Blending Department ACCOUNT NO. Date Item Debit Credit Balance Debit Credit Mar. 1 Bal., 6,200 units, 1/5 completed 8,556 31 Direct materials, 248,000 units 347,200 355,756 31 Direct labor 60,500 416,256 31 Factory overhead 15,076 431,332 31 Goods transferred, 249,000 units ? 31 Bal., ? units, 4/5 completed ?Explanation / Answer
UNITS TO ACCOUNT FOR: Beginning Work in Process units 6,200 Add: Units Started in Process 248,000 Total Units to account for: 254,200 Equivalent Units: Whole Material Cost Conversion % Completion Units % Completion Units Units completed from Beg. WIP 6200 0% 0 80% 4,960 Units started and completed 242800 100% 242,800 100% 242,800 Total Units transferred to Molding 249000 242,800 247,760 Ending Work in Process 5200 100% 5,200 80% 4,160 Total Equivalent units 248,000 251,920 COST PER EQUIVALENT UNIT: Material Conversion Total cost added during the year 347,200 75,576 Equivalent Units 248,000 251,920 Cost per Equivalent unit 1.40 0.30 TOTAL COST CHARGED TO PRODUCTION Material Conversion Total Inventory cost in Beginning 8556 Cost incurred in march 422776 Total cost to be accounted for 431332 Cost allocated to completed and partially completed: Inventory in Beginning 8556 To complete the inventory 0 1488 1488 Cost of completed Beginning WIP 10044 Started and completed in marh 339920 72840 412760 Transferred to Mmolding deptt. 422804 Inventory in Process in Mar31 7280 1248 8528 Total cost assigned 431332