FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Bavarian 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 October 31:
Attachment
Instructions
1. Prepare a cost of production report and identify the missing amounts for Work in Process—Blending Department.
2. Assuming that the October 1 work in process inventory includes direct materials of $38,295, determine the increase or decrease in the cost per equivalent unit for direct materials and conversion between September and October.
Transcribed Image Text:ACCOUNT Work in Process-Blending Department
ACCOUNT No.
Balance
Debit
Credit
Debit
Credit
Date
Item
Oct. 1
Bal., 2,300 units, /s completed
31
46,368
Direct materials, 26,000 units
31
31
429,000
100,560
48,480
475,368
575,928
624,408
Direct labor
Factory overhead
31
Goods transferred, 25,700 units
31
Bal., 2 units, s completed
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