ACC – Venus Chocolate Company

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., 4,200 units, 3/5 completed 16,380
31 Direct materials, 168,000 units 571,200 587,580
31 Direct labor 120,800 708,380
31 Factory overhead 30,184 738,564
31 Goods transferred, 169,000 units ?
31 Bal., ? units, 2/5 completed ?

Required:

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.

Venus Chocolate Company

Cost of Production Report-Blending Department

For the Month Ended March 31, 2014

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 costs:

Equivalent Units

Whole Units

Direct Materials

Conversion
Inventory in process, March 1

Started and completed in March

Transferred to Molding Department in March

Inventory in process, March 31

Total units to be assigned costs

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

2. Assuming that the March 1 work in process inventory includes $13,860 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.

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