Suppose that Everett McCleskey, a local businessperson, is a good friend of Al Miller, the owner of a local candy store

9-1A. Express versus Implied Contracts. Suppose that Everett McCleskey, a local businessperson, is a good friend of Al Miller, the owner of a local candy store. Every day on his lunch hour, McCleskey goes into Miller's candy store and spends about five minutes looking at the candy. After examining Miller's candy and talking with Miller, McCleskey usually buys one or two candy bars. One afternoon McCleskey goes into Miller's candy shop, looks at the candy, and picks up a $1 candy bar. Seeing that Miller is very busy, he waves the candy bar at Miller without saying a word and walks out. Is there a contract? If so, classify it.


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Venus Chocolate Company processes chocolate into candy bars

PR 20-2A 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, 2010:

Account Work In Process--Blending Department ACCT NO.
Date Item debit credit Balance Jan. Debit Credit

1 Bal.,6,000 units, % completed 21,840

31 Direct Materials,240,000 units 768,000(debit) 789,840
31 Direct Labor 153,200(debit) 943,040
31 Factory Overhead 38,160(debit) 981,200
31 Goods transferred, 242,000units ?(credit)
31 Bal.,?units,1/5 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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