enus Chocolate Company processes chocolate into candy bars. Theprocess begins by placing direct materials (raw chocolate, milk,and sugar) into the Blending Department. All materials are placedinto production at the beginning of the blending process. Afterblending, the milk chocolate is then transferred to the MoldingDepartment, where the milk chocolate is formed into candy bars. Thefollowing is a partial work in process account of the BlendingDepartment at March 31, 2016:
| ACCOUNT Work in Process—BlendingDepartment | ACCOUNT NO. |
| Date | Item | Debit | Credit | Balance |
| Debit | Credit |
| Mar. | 1 | Bal., 5,400 units, 1/5 completed | | | 17,712 | | |
| 31 | Direct materials, 216,000 units | 691,200 | | | 708,912 | | |
| 31 | Direct labor | 138,800 | | | 847,712 | | |
| 31 | Factory overhead | 34,640 | | | 882,352 | | |
| 31 | Goods transferred, 217,000 units | | ? | | | |
| 31 | Bal., ? units, 1/5 completed | | | ? | | |
Required:
1. Prepare a cost of production report, andidentify the missing amounts for Work in Process—BlendingDepartment. If an amount is zero, enter "0". When computing costper equivalent units, round to two decimal places.
| Venus Chocolate Company |
| Cost of Production Report-Blending Department |
| For the Month Ended March 31, 2016 |
| Unit Information |
| Units charged to production: |
| Inventory in process, March 1 | |
| Received from materials storeroom | |
| Total units accounted for by the BlendingDepartment | |
| Units to be assigned costs: |
| | Equivalent Units |
| Whole Units | Direct Materials | Conversion |
| Inventory in process, March 1 | | | |
| Started and completed in March | | | |
| Transferred to Molding Department in March | | | |
| Inventory in process, March 31 | | | |
| Total units to be assigned costs | | | |
| Cost Information |
| Costs per equivalent unit: |
| Direct Materials | Conversion |
| Total costs for March in Blending Department | $ | $ |
| Total equivalent units | | |
| Cost per equivalent unit | $ | $ |
| Costs charged to production: |
| Direct Materials | Conversion | Total |
| Inventory in process, March 1 | | | $ |
| Costs incurred in March | | | |
| Total costs accounted for by the BlendingDepartment | | | $ |
| Cost allocated to completed and partially completedunits: | | | |
| Inventory in process, March 1 balance | | | $ |
| To complete inventory in process, March 1 | $ | $ | |
| Cost of completed March 1 work in process | | | $ |
| Started and completed in March | | | |
| Transferred to Molding Department in March | | | $ |
| Inventory in process, March 31 | | | |
| Total costs assigned by the BlendingDepartment | | | $ |
Feedback
1. Calculate equivalent units for materials and conversioncosts. Calculate the cost per equivalent unit for materials andconversion costs. Calculate the costs assigned to the beginninginventory, the units started and completed, and the endinginventory.
Learning Objective 2, Learning Objective 4.
2. Assuming that the March 1 work in processinventory includes $16,740 of direct materials, determine theincrease or decrease in the cost per equivalent unit for directmaterials and conversion between February and March. If required,round your answers to the nearest cent.
| Increase or Decrease | Amount |
| Change in direct materials cost per equivalent unit | | $ |
| Change in conversion cost per equivalent unit | | $ |
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