Equivalent Units and Related Costs; Cost of Production Report; Entries Wilmington 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 December 1, 2014: Work in Process—Filling Department (3,200 units, 40% completed): Direct materials (3,200 x $15.80) $50,560 Conversion (3,200 x 40% x $10.30) 13,184 $63,744 The following costs were charged to Work in Process—Filling during December: Direct materials transferred from Reaction Department: 41,300 units at $15.60 a unit $644,280 Direct labor 228,140 Factory overhead 219,196 During December, 40,900 units of specialty chemicals were completed. Work in Process—Filling Department on December 31 was 3,600 units, 50% completed. Required: Hide Hint(s) 1. Prepare a cost of production report for the Filling Department for December. If an amount is zero, enter "0". If required, round your cost per equivalent unit answers to two decimal places. Wilmington Chemical Company Cost of Production Report-Filling Department For the Month Ended December 31, 2014 Unit Information Units charged to production: Inventory in process, December 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, December 1 Started and completed in December Transferred to finished goods in December Inventory in process, December 31 Total units to be assigned costs Cost Information Costs per equivalent unit: Direct Materials Conversion Total costs for December in Filling Department $ $ Total equivalent units Cost per equivalent unit $ $ Costs charged to production: Direct Materials Conversion Total Inventory in process, December 1 $ Costs incurred in December Total costs accounted for by the Filling Department $ Cost allocated to completed and partially completed units: Inventory in process, December 1 balance $ To complete inventory in process, December 1 $ Cost of completed December 1 work in process $ Started and completed in December $ Transferred to finished goods in December $ Inventory in process, December 31 Total costs assigned by the Filling Department $ Hide Feedback Partially Correct Check My Work 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. Learning Objective 2, Learning Objective 3 and Learning Objective 4. Hide 2. Journalize the entries for (1) costs transferred from Reaction to Filling and (2) the cost transferred from Filling to Finished Goods. (1) (2) Hide Feedback Incorrect Check My Work 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? Learning Objective 2, Learning Objective 3 and Learning Objective 4. 3. Determine the increase or decrease in the cost per equivalent unit from November to December 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 Select Decrease Increase $ Change in conversion cost per equivalent unit Select Decrease Increase $ 4. The cost of production report may be used as the basis for allocating product costs between Select Work in Process Finished Goods and Select Transferred-Out Goods Cost of Goods Sold. 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. Hide Feedback Incorrect Check My Work Feedback 3 and 4. Compare the costs per equivalent unit for November and December. Review the benefits of the cost of production report. Learning Objective 2, Learning Objective 3 and Learning Objective 4.