Please assist and provide steps. Cost of Production Report: Average Cost Method
ID: 2338990 • Letter: P
Question
Please assist and provide steps.
Cost of Production Report: Average Cost Method The increases to Work in Process-Roasting Department for Boston Coffee Company for March 2016 as well as information concerning production are as follows: work in process, March 1, 1,000 pounds, 20% completed Coffee beans added during March, 61,700 pounds Conversion costs during March work in process, March 31, 600 pounds, 60% completed Goods finished during March, 62,100 pounds Prepare a cost of production report, using the average cost method. If required, round cost per equivalent unit answers to the nearest cent $14,990 517,170 217,360 Boston Coffee Company Cost of Production Report-Roasting Department For the Month Ended March 31, 2016 Units to account for during production Inventory in process, March 1 Received from materials storeroom Total units accounted for by the Roasting Department Units to be assigned costs: Whole Equivalent Units Units of Production Transferred to finished goods in March Inventory in process, March 31 Total units to be assigned costs Costs per equivalent unit: Costs Total costs for March in Roasting Department Total equivalent units Cost per equivalent unit Costs assigned to production Inventory in process, March 1 Costs incurred in March Total costs accounted for by the Roasting Department Costs allocated to completed and partially completed units Transferred to finished goods in March Inventory in process, March 31 Total costs assigned by the Roasting DepartmentExplanation / Answer
Unit Information Units to account for during production: Inventory in process, March 1 1000 Received from materials storeroom 61700 Total units accounted for by the Roasting Department 62700 Units to be assigned costs: Whole Units Equivalent Units of Production Transferred to finished goods in March 62100 62100 Inventory in process, March 31 600 360 =600*60% Total units to be assigned costs 62700 62460 Cost Information Costs per equivalent unit: Costs Total costs for March in Roasting Department 749520 =14990+517170+217360 Total equivalent units 62460 Cost per equivalent unit 12 = 749520/62460 Costs assigned to production: Inventory in process, March 1 14990 Costs incurred in March 734530 =517170+217360 Total costs accounted for by the Roasting Department 749520 Costs allocated to completed and partially completed units: Transferred to finished goods in March 745200 =62100*12 Inventory in process, March 31 4320 =360*12 Total costs assigned by the Roasting Department 749520