Equivalent Units and Related Costs; Cost of Production Report;Entries Dover Chemical Company manufactures specialty chemicals bya series of three processes, all materials being introduced in theDistilling Department. From the Distilling Department, thematerials pass through the Reaction and Filling departments,emerging as finished chemicals. The balance in the account Work inProcess—Filling was as follows on January 1: Work inProcess—Filling Department (4,800 units, 60% completed): Directmaterials (4,800 x $12.70) $60,960 Conversion (4,800 x 60% x $8.30)23,904 $84,864 The following costs were charged to Work inProcess—Filling during January: Direct materials transferred fromReaction Department: 61,900 units at $12.50 a unit $773,750 Directlabor 269,060 Factory overhead 258,508 During January, 61,400 unitsof specialty chemicals were completed. Work in Process—FillingDepartment on January 31 was 5,300 units, 40% completed. Required:1. Prepare a cost of production report for the Filling Departmentfor January. If an amount is zero, enter "0". If required, roundyour cost per equivalent unit answers to two decimal places. DoverChemical Company Cost of Production Report-Filling Department Forthe Month Ended January 31 Unit Information Units charged toproduction: Inventory in process, January 1 Received from ReactionDepartment Total units accounted for by the Filling DepartmentUnits to be assigned costs: Equivalent Units Whole Units DirectMaterials Conversion Inventory in process, January 1 Started andcompleted in January Transferred to finished goods in JanuaryInventory in process, January 31 Total units to be assigned costsCost Information Costs per equivalent unit: Direct MaterialsConversion Total costs for January in Filling Department $ $ Totalequivalent units Cost per equivalent unit $ $ Costs charged toproduction: Direct Materials Conversion Total Inventory in process,January 1 $ Costs incurred in January Total costs accounted for bythe Filling Department $ Cost allocated to completed and partiallycompleted units: Inventory in process, January 1 balance $ Tocomplete inventory in process, January 1 $ $ Cost of completedJanuary 1 work in process $ Started and completed in JanuaryTransferred to finished goods in January $ Inventory in process,January 31 Total costs assigned by the Filling Department $ 2.Journalize the entries for (1) costs transferred from Reaction toFilling and (2) the costs transferred from Filling to FinishedGoods. (1) (2) 3. Determine the increase or decrease in the costper equivalent unit from December to January for direct materialsand conversion costs. If required, round your answers to twodecimal places. Increase or Decrease Amount Change in directmaterials cost per equivalent unit $ Change in conversion cost perequivalent unit 4. The cost of production report may be used as thebasis for allocating product costs between and . The report canalso be used to control costs by holding each department headresponsible for the units entering production and the costsincurred in the department. Any differences in unit product costsfrom one month to another, such as those in part (3), can bestudied carefully and any significant differences investigated.