Bavarian 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 October 31, 2014:
Date Item Debit Credit Balance
Debit Credit
Oct.1Bal., 2,300 units, 3/5 completed 46,368
31 Direct materials, 26,000 units 429,000 475,368
31 Direct labor 100,560 575,928
31 Factory overhead 4 8,480 624,408
31 Goods transferred, 25,700 units ?
31 Bal., units, 1/5 completed ?
1. Prepare a cost of production report, and identify the missing amounts for Work in Process - Blending Department. If an amount is zero enter "0". If required, round your cost per equivalent unit answers to the nearest cent.
2. Assuming that the October 1 work in process inventory includes direct materials of $38,295, determine the increase or decrease in the cost per equivalent unit for direct materials and conversion between September and October. If required, round your answers to two decimal places.
Change in direct materials cost per equivalent unit Increase or Decrease Amount
Change in conversion cost per equivalent unit Increase or Decrease Amount