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, 2014:
| ACCOUNT Work in Process-Blending Department |
ACCOUNT NO. |
| Date |
Item |
Debit |
Credit |
Balance |
| Debit |
Credit |
| Mar. |
1 |
Bal., 7,200 units, 4/5 completed |
|
|
29,376 |
|
|
|
31 |
Direct materials, 288,000 units |
979,200 |
|
|
1,008,576 |
|
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|
31 |
Direct labor |
207,500 |
|
|
1,216,076 |
|
|
|
31 |
Factory overhead |
51,880 |
|
|
1,267,956 |
|
|
|
31 |
Goods transferred, 289,000 units |
|
? |
|
|
|
|
31 |
Bal., ? units, 4/5 completed |
|
|
? |
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Required:
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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 cost per equivalent units, round to two decimal places.
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Cost of Production Report-Blending Department
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For the Month Ended March 31, 2014
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| Unit Information |
| Units charged to production: |
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Inventory in process, March 1
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Received from materials storeroom
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Total units accounted for by the Blending Department
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| Units to be assigned costs: |
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Inventory in process, March 1
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Started and completed in March
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Transferred to Molding Department in March
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Inventory in process, March 31
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Total units to be assigned costs
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| Cost Information |
| Costs per equivalent unit: |
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Total costs for March in Blending Department
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| Costs charged to production: |
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Inventory in process, March 1
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Total costs accounted for by the Blending Department
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Cost allocated to completed and partially completed units:
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Inventory in process, March 1 balance
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To complete inventory in process, March 1
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Cost of completed March 1 work in process
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Started and completed in March
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Transferred to Molding Department in March
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Inventory in process, March 31
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Total costs assigned by the Blending Department
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2. Assuming that the March 1 work in process inventory includes $23,040 of direct materials, determine the increase or decrease in the cost per equivalent unit for direct materials and conversion between February and March. If required, round your answers to the nearest cent.
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Increase or Decrease |
Amount |
| Change in direct materials cost per equivalent unit |
SelectDecreaseIncrease |
$ |
| Change in conversion cost per equivalent unit |
SelectDecreaseIncrease |
$ |