PR 20-2A 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 January 31, 2010:
Account Work In Process–Blending Department ACCT NO.
Date Item debit credit Balance Jan. Debit Credit
1 Bal.,6,000 units, %completed 21,840
31 Direct Materials,240,000 units 768,000(debit) 789,840
31 Direct Labor 153,200(debit) 943,040
31 Factory Overhead 38,160(debit) 981,200
31 Goods transferred, 242,000units ?(credit)
31 Bal.,?units,1/5 completed ?
1. Prepare a cost of production report, and identify the missing amounts for Work in Process – Blending Department.
Assuming that the January 1 work in process inventory includes direct
materials of $18,600, determine the increase or decrease in the cost per
equivalent unit for direct materials and conversion between December
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