Thursday 1 November 2012

Wilmington Chemical Company manufactures specialty chemical by a series of three processes, all materials being introduced in the Distilling Department, the material pass through the reaction and Filling departments, emerging as finished chemicals.

Wilmington Chemical Company manufactures specialty chemical by a series of three processes, all materials being introduced in the Distilling Department, the material pass through the reaction and Filling departments, emerging as finished chemicals.

The balance in the accounts work in process- Filling was as follows on decemver1

work in process-filling dept.




(2,500 units 60% complete)




Direct material (2,500x13.10)                   32,750

41225

Conversion (2,500x605x5.65)       8,475









The following cost were charged to work in process- Filling during December

Direct Materials transferred from reaction



department 42,100 units at 13.000 a unit   547,300

547300

direct Labor                 143,200




Factory overhead                79,650

222850








During December 40,900 units of specialty chem. Were completed. Work in process filling dept. on dec. 31 3,700 units completed'













1 Prepare a cost of production report for the filling department for December

2 journalize the entries for cost transferred from reactions to filling and cost  transferred from filling to finished goods

3 determine the increase or decrease in the cost per equivalent units from nov. to dec. for direct material and conversion cost

4 disscuss the uses of the cost of production report and the results of part3

 



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