Cost of Production Report: Average Cost Method Sunrise Coffee Company roasts and
ID: 2342089 • 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 work in process account of the Roasting Department at December 31: ACCOUNT Work in Process-Roasting Department ACCOUNT NO. Balance Date Item Debit Credit Debit 23,318 252,184 381,923 568,620 Credit Dec. 1 Ba, 13, 100 units, 25% completed 31 Direct materials, 226,600 units 31 Direct labor 31 Factory overhead 31 Goods transferred, 228,600 units 31 Bal., 2 units, 75% completed 228,866 129,739 186,697 Required: Prepare a cost of production report, using the average cost method, and identify the missing amounts for Work in Process-Roasting Department. If required, round your cost per equivalent unit answer to two decimal places.Explanation / Answer
Answer
Unit Information
Unit charged to production:
Inventory in process Dec 1
13,100
Received from material storeroom
226,600
Total Units accounted for
239,700
Units to be assigned cost:
Whole Units
Equivalent units of production
Transferred to Packing Department
228,600
228,600 [228600 x 100%]
Inventory in Process Dec 31
11,100
8,325 [11100 x 75%]
Total units to be assigned cost
239,700
236,925
Cost Information
Cost per Equivalent units:
Total cost for December in Roasting Department
$ 568,620.00
Total Equivalent units
236,925
Cost per Equivalent units:
$ 2.40
Cost Assigned to Production:
Inventory in Process Dec 1
$ 23,318.00
Cost incurred in Dec
$ 545,302.00
Total Cost accounted for by the Roasting Department
$ 568,620.00
Costs allocated to completed & partially completed units:
Transferred to Packing Department in Dec
[228600 units x $ 2.40]
$ 548,640.00
Inventory in Process Dec 31
[8325 units x $ 2.40]
$ 19,980.00
Total costs assigned by the Roasting Department
$ 568,620.00
Unit Information
Unit charged to production:
Inventory in process Dec 1
13,100
Received from material storeroom
226,600
Total Units accounted for
239,700
Units to be assigned cost:
Whole Units
Equivalent units of production
Transferred to Packing Department
228,600
228,600 [228600 x 100%]
Inventory in Process Dec 31
11,100
8,325 [11100 x 75%]
Total units to be assigned cost
239,700
236,925
Cost Information
Cost per Equivalent units:
Total cost for December in Roasting Department
$ 568,620.00
Total Equivalent units
236,925
Cost per Equivalent units:
$ 2.40
Cost Assigned to Production:
Inventory in Process Dec 1
$ 23,318.00
Cost incurred in Dec
$ 545,302.00
Total Cost accounted for by the Roasting Department
$ 568,620.00
Costs allocated to completed & partially completed units:
Transferred to Packing Department in Dec
[228600 units x $ 2.40]
$ 548,640.00
Inventory in Process Dec 31
[8325 units x $ 2.40]
$ 19,980.00
Total costs assigned by the Roasting Department
$ 568,620.00