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Venus Chocolate

Price: $3.00


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, 2012:


Debit Credit Debit Credit
Bal., 6,000 units, ⅗ completed      21,840  
Direct materials, 240,000 units  768,000    789,840  
Direct labor  153,200    943,040  
Goods transferred, 242,000 units  38,160    981,200  
Goods transferred,         
Bal., ? units, ⅕ completed  

Instructions
1. Prepare a cost of production report, and identify the missing amounts for Work in
Process—Blending Department.

2. 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 and January.

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