Equivalent Units and Related Costs; Cost of Production Report; Entries
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
(5,200 units, 20% completed):
Direct materials (5,200 x $12.40) $64,480
Conversion (5,200 x 20% x $8.10) 8,424
The following costs were charged to Work in Process—Filling during January:
Direct materials transferred from Reaction
Department: 67,100 units at $12.20 a unit $818,620
Direct labor 291,310
Factory overhead 279,890
During January, 66,500 units of specialty chemicals were completed. Work in Process—Filling Department on January
31 was 5,800 units, 30% completed.