Dover chemical company manufactures specialty chem…

Equivalent units and related costs; cost of production report

Dover Chemical Company manufactures specialty chemicals by a series of three processes, all materials being introduced in the Distilling Department. From the Distilling Depart- ment, the materials pass through the Reaction and Filling departments, emerging as fin- ished chemicals.

The balance in the account Work in Process—Filling was as follows on January 1, 2016:

Work in Process—Filling Department (3,400 units, 60% completed):

Direct materials (3,400 × $9.58)


Conversion (3,400 × 60% × $3.90)




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


Direct materials transferred from Reaction


Department: 52,300 units at $9.50 a unit


Direct labor


Factory overhead


During January, 53,000 units of specialty chemicals were completed. Work in Process— Filling Department on January 31 was 2,700 units, 30%   completed.


3.     Prepare a cost of production report for the Filling Department for January.

4.     Journalize the entries for costs transferred from Reaction to Filling and the costs trans- ferred from Filling to Finished Goods.

5.     Determine the increase or decrease in the cost per equivalent unit from December to January for direct materials and conversion costs.

6.                               Description: the uses of the cost of production report and the results of part (3).


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