Cost of Production Report: Average Cost Method Sunrise Coffee Company roasts and
ID: 2340878 • Letter: C
Question
Cost of Production Report: Average Cost Method Sunrise Coffee Company roasts and packs coffee beans. The process begins in the Roasting Department. From the Roasting Department, the coffee beans are transferred to the Packing Department. The following is a partial workin process account of the Roasting Department at December 31 ACCOUNT NO. Date Item Debit 31 Direct materials, 195,500 units 31 Direct labor 31 Factory overhead 31-Goods transferred, 197,200 units 31 Bal., 2 units, 75% completed 49,381 534,221 809,634 1,205,960 484,840 275,413 396,326 Required round your cost per equivalent unit answer to two decimal places Sunrise Coffee Company Report-Roasting Cost of Units charged to 11:14 AMExplanation / Answer
Sunrise Coffee Company Cost of Production Report-Roasting Department For the Month Ended December 31 Unit Information Units to account for during production: Inventory in process, December 1 11300 Received from materials storeroom 195500 Total units accounted for by the Roasting Department 206800 Units to be assigned costs: Whole Units Equivalent Units of Production Transferred to Packing Department in December 197200 197200 Inventory in process, December 31 9600 7200 Total units to be assigned costs 206800 204400 Cost Information Unit costs: Costs Total costs for December in Roasting Department 1205000 Total equivalent units 204400 Cost per equivalent unit 5.9 Costs charged to production: Inventory in process, December 1 49381 Costs incurred in December 1156579 Total costs accounted for by the Roasting Department 1205960 Costs allocated to completed and partially completed units: Transferred to Packing Department in December 1163480 Inventory in process, December 31 42480 Total costs assigned by the Roasting Department 1205960