Cost of Production Report Hana Coffee Company roasts and packs coffee beans. The

Question

Cost of Production Report Hana Coffee Company roasts and packs coffee beans. The process begins by placing coffee beans into the Roasting Department. From the Roasting Department, coffee beans are then transferred to the Packing Department. The following is a partial work in process account of the Roasting Department at July 31: ACCOUNT NO. CreditBalance Debit Date Item Debit Credit uly 1 Bal., 4,200 units, 1/5 completed 31 Direct materials, 189,000 units 31 Direct labor 31 Factory overhead 31 Goods transferred, 189,000 units 31 Bal., 2 units, 3/5 completed 510,300 106,800 26,676 11,592 521,892 628,692 655,368

Explanation / Answer

FIFO method Beggining units 4200 Transferred out 1,89,000 Started into production 189000 Ending units 4,200 193200 193200 Equivalent units Material Conversion Beginning units 4200 4200 Completion in current period 0% 80% A 0 3360 Units started and completed 184800 184800 Completion 100% 100% B 184800 184800 Ending Units 4,200 4,200 Completion 100% 60% C 4200 2520 Total units A+B+C 189000 190680 Cost per equivalent units Per unit cost Cost Total units Per unit cost Material cost 510300 189000 2.70 Conversion cost 133476 190680 0.70 Total 643776 3.40 Cost of goods sold Material convertion cost Beginning work in progress A 10920 672 11592 Beginning inventory completed Completion 0% 80% Per unit cost 2.70 0.70 Units 4200 4200 Total cost   B 0 2352 2352 Units started and completed Completion 100% 100% Per unit cost 2.70 0.70 Units 184800 184800 Total cost    C 498960 129360 628320 Total cost A+B+C 509880 131712 642264 Ending work in progress Completion 100% 60% Per unit cost 2.70 0.70 Units 4,200 4,200 Total cost     11340 1764 13104 Total cost accounted for 655368 Cost per equivalent unit Material Conversion cost For current period 2.70 0.70 For beginning inventory 2.6 0.80 increase (decrease) 0.10 -0.10

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