Reference no: EM132659742

Dover 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 January 1:

Work in Process-Filling Department(3,400 units, 60% completed):
Direct materials (3,400 x $9.58)$32,572
Conversion (3,400 x 60% x $3.90)7,956
Total $40,528

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 $496,850
Direct labor 101,560
Factory overhead 95,166

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

Question 1: How to do a cost of production report for the Filling Department for January. If an amount is zero, enter "0". If required, round your cost per equivalent unit answers to the nearest cent.

Question 2: Journalize the entries for (1) costs transferred from Reaction to Filling and (2) the costs transferred from Filling to Finished Goods. If an amount box does not require an entry, leave it blank.

Question 3: Determine the increase or decrease in the cost per equivalent unit from December to January for direct materials and conversion costs. If required, round your answers to two decimal places.