Cost of Production Report The debits to Work in Process—Roasting Department for
ID: 2332534 • 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.
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b. Compute and evaluate the change in cost per equivalent unit for direct materials and conversion from the previous month (July). If required, round your answers to the nearest cent.
Work in process, August 1, 1,200 pounds, 50% completed $5,460* *Direct materials (1,200 X $3.8) $4,560 Conversion (1,200 X 50% X $1.5) 900 $5,460 Coffee beans added during August, 38,000 pounds 142,500 Conversion costs during August 60,800 Work in process, August 31, 2,000 pounds, 70% completed ? Goods finished during August, 37,200 pounds ?Explanation / Answer
MORNING BREW COFFEE COMPANY
600
(1200*50%)
36000
(38000-2000)
203300
(142500+60800)
960
(600*1.60)
135000
(36000*3.75)
57600
(36000*1.60)
7500
(2000*3.75)
2240
(1400*1.60)
Part B
$0.05
(3.75-3.80)
$0.10
(1.60-1.50)