enus 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, 2012:
ACCOUNT Work in Process”Blending Department ACCOUNT NO.
Date Item Debit Credit Balance
Debit Credit
Mar. 1 Bal., 5,500 units, 4/5 completed 21,010
31 Direct materials, 220,000 units 704,000 725,010
31 Direct labor 139,800 864,810
31 Factory overhead 34,920 899,730
31 Goods transferred, 221,000 units ?
31 Bal., ? units, 2/5 completed ?
Instructions:
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Hint(s)
1. Prepare a cost of production report, and identify the missing amounts for Work in Process”Blending Department. If an amount is zero, enter in a zero (0). When computing cost per equivalent units, round to two decimal places.
Venus Chocolate Company
Cost of Production Report-Blending Department
For the Month Ended March 31, 2012
Unit Information
Units charged to production:
Inventory in process, March 1
Received from materials storeroom
Total units accounted for by the Blending Department
Units to be assigned cost:
Equivalent Units
Whole Units
Direct Materials
Conversion
Inventory in process, March 1
Started and completed in March
Transferred to Blending Department in March
Inventory in process, March 31
Total units to be assigned cost
Cost Information
Costs per equivalent unit:
Direct Materials
Conversion
Total costs for March in Blending Department
$
$
Total equivalent units
Cost per equivalent unit
$
$
Costs charged to production:
Direct Materials
Conversion
Total
Inventory in process, March 1
$
Costs incurred in March
Total costs accounted for by the Blending Department
$
Cost allocated to completed and partially completed units:
Inventory in process, March 1 balance
$
To complete inventory in process, March 1
$
$
Cost of completed March 1 work in process
$
Started and completed in March
Transferred to Molding Department in March
$
Inventory in process, March 31
Total costs assigned by the Blending Department
$