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Percent Complete with
Units Respect to Conversion
Beginning work in process inventory …….. 3,800 90%
Transferred in from the prior department during January …….. 53,000
Completed and transferred to the next department during January …….. 51,300
Ending work in process inventory …….. 5,500 30%

Parmentier Company uses the weighted-average method in its process costing system. The Molding Department is the second department in its production process. The data above summarize the department's operations in January.

The accounting records indicate that the conversion cost that had been assigned to beginning work in process inventory was $5,096 and a total of $87,668 in conversion costs were incurred in the department during January.

What was the cost per equivalent unit for conversion costs for January in the Molding Department? (Round off to three decimal places.):


a.

$1.654
b.

$1.752
c.

$1.490
d.

$1.499

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Reid Wolff
Reid WolffLv2
28 Sep 2019

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avalt Corporation uses the weighted-average method in itsprocess costing system. The Molding Department is the seconddepartment in its production process. The data below summarize thedepartment's operations in January.


Units PercentComplete with Respect to Conversion
Beginning work inprocess inventory 4,900 84%
Transferred in fromthe prior department during January 58,200
Completed andtransferred to the next department during January 56,100
Ending work inprocess inventory 7,000 75%

The Molding Department's cost per equivalent unit for conversioncost for January was $8.80. How much conversion cost was assignedto the ending work in process inventory in the Molding Departmentfor January? (Round your final answer to nearest wholedollar.)

In Shady Company, materials are entered at the beginning of each process. Work in process inventories, with the percentage of work done on conversion costs, and production data for its Sterilizing Department in selected months during 2017 are as follows. Beginning Work in Process Ending Work in Process Month Units Conversion Cost% Units Transferred Out Units Conversion Cost% January -0- — 11,000 2,000 60 March -0- — 12,000 3,000 30 May -0- — 14,000 7,000 80 July -0- — 10,000 1,500 40 Instructions (a) Compute the physical units for January and May. (b) Compute the equivalent units of production for (1) materials and (2) conversion costs for each month.

Dover Chemical 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 January 1:

Work in Process—Filling Department
(4,200 units, 70% completed):
Direct materials (4,200 x $16.2) $68,040
Conversion (4,200 x 70% x $10.6) 31,164
$99,204

The following costs were charged to Work in Process—Filling during January:

Direct materials transferred from Reaction
Department: 54,200 units at $16 a unit $867,200
Direct labor 295,310
Factory overhead 283,730

During January, 53,700 units of specialty chemicals were completed. Work in Process—Filling Department on January 31 was 4,700 units, 40% completed.

Required:

1. Prepare a cost of production report for the Filling Department for January. If an amount is zero, enter "0". If required, round your cost per equivalent unit answers to two decimal places.

Dover Chemical Company
Cost of Production Report-Filling Department
For the Month Ended January 31
Unit Information
Units charged to production:
Inventory in process, January 1
Received from Reaction Department
Total units accounted for by the Filling Department
Units to be assigned costs:
Equivalent Units
Whole Units Direct Materials Conversion
Inventory in process, January 1
Started and completed in January
Transferred to finished goods in January
Inventory in process, January 31
Total units to be assigned costs
Cost Information
Cost per equivalent unit:
Direct Materials Conversion
Total costs for January in Filling Department $ $
Total equivalent units
Cost per equivalent unit $ $
Costs assigned to production:
Direct Materials Conversion Total
Inventory in process, January 1 $
Costs incurred in January
Total costs accounted for by the Filling Department $
Costs allocated to completed and partially completed units:
Inventory in process, January 1 balance $
To complete inventory in process, January 1 $
Cost of completed January 1 work in process $
Started and completed in January $
Transferred to finished goods in January $
Inventory in process, January 31
Total costs assigned by the Filling Department $

Feedback

1. Calculate equivalent units for materials and conversion costs. Calculate the cost per equivalent unit for materials and conversion costs. Calculate the costs assigned to the beginning inventory, the units started and completed, and the ending inventory.

2. Journalize the entries for (1) costs transferred from Reaction to Filling and (2) the cost transferred from Filling to Finished Goods.

(1) Work in Process-Filling Department
Work in Process-Reaction Department
(2) Finished Goods
Work in Process-Filling Department

Feedback

2. Remember that there are three types of inventory; materials, work in process, and finished goods. What costs are captured in the work in process account? Are these units 100% complete or are they being transferred to another department?

3. Determine the increase or decrease in the cost per equivalent unit from December to January for direct materials and conversion costs. If required, round your answers to two decimal places.

Increase or Decrease Amount
Change in direct materials cost per equivalent unit Decrease $
Change in conversion cost per equivalent unit Increase $

4. Discuss the uses of the cost of production report and the results of part (3).

The cost of production report may be used as the basis for allocating product costs between Work in Process and Finished Goods . The report can also be used to control costs by holding each department head responsible for the units entering production and the costs incurred in the department. Any differences in unit product costs from one month to another, such as those in part (3), can be studied carefully and any significant differences investigated.

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