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 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, 2014:
Work in Process— Filling Department ( 3,400 units, 60% completed):
Direct materials ( 3,400 × $ 9.58) = $ 32,572
Conversion ( 3,400 × 60% × $ 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.
Instructions
Use the attached excel file to:
1. Prepare a cost of production report for the Filling Department for January.
