Cost of Production Report The debits to Work in Process—Roasting Department for
ID: 1165262 • Letter: C
Question
Cost of Production Report
The debits to Work in Process—Roasting Department for Morning Brew Coffee Company for August, together with information concerning production, are as follows:
All direct materials are placed in process at the beginning of production.
a. Prepare a cost of production report, presenting the following computations:
Direct materials and conversion equivalent units of production for August.
Direct materials and conversion costs per equivalent unit for August.
Cost of goods finished during August.
Cost of work in process at August 31.
If an amount is zero, enter in "0". For the cost per equivalent unit, round your answer to two decimal places.
Work in process, August 1, 400 pounds, 10% completed $2,080* *Direct materials (400 X $5) $2,000 Conversion (400 X 10% X $2) $80 $2,080 Coffee beans added during August, 13,000 pounds 64,350 Conversion costs during August 27,321 Work in process, August 31, 700 pounds, 50% completed ? Goods finished during August, 12,700 pounds ?Explanation / Answer
UNITS TO ACCOUNT FOR: Beginning Work in Process units 400 Add: Units Started in Process 13,000 Total Units to account for: 13,400 UNITS TO BE ACCOUNTED FOR: Units started and completed 12,700 Ending Work in Process 700 Total Units to be accounted for: 13,400 Equivalent Units: Material Cost Conversion % Completion Units % Completion Units Units started and completed 100% 12,700 100% 12,700 Ending Work in Process 100% 700 50% 350 Total Equivalent units 13,400 13,050 TOTAL COST TO ACCOUNT FOR: Material Conversion Beginning work in Process 2,000 80 Cost Added during May 64,350 27,321 Total Cost to account for: 66,350 27,401 Total Cost to account for: 93,751 COST PER EQUIVALENT UNIT: Material Conversion Total cost added during the year 66,350 27,401 Equivalent Units 13,400 13,050 Cost per Equivalent unit 4.95 2.1 TOTAL COST ACCOUNTED FOR: Units started and Transferred out (12700 units) Equivalent unit Cost per EU Total Cost Material 12,700 4.95 62865 Conversion Cost 12,700 2.1 26670 Total Cost of Units completed and transferred out: 89535 Ending Work in process (700 units) Equivalent unit Cost per EU Total Cost Material 700 4.95 3465 Conversison Cost 350 2.1 735 Total cost of Ending Work in process: 4,200 Req a: Material Conversion Equivalent units 13400 13050 Req b: Material Conversion Cost per unit 4.95 2.1 Req c: Cost of Finished goods 89535 Req d: Cost of Ending WIP 4200