Cost of Production Report The debits to Work in Process-Roasting Department for
ID: 2342883 • Letter: C
Question
Cost of Production Report The debits to Work in Process-Roasting Department for Morning Brew Coffes Company for August, together with i are as follows: Work in process, August 1, 700 pounds, 40% completed $4,228 Direct materials (700 X S5.2) $3,640 $588 S4,228 Conversion (700 x 40% x $2.1) Coffee beans added during August, 22,000 pounds Conversion costs during August Work in process, August 31, 1,100 pounds, 60% completed Goods finished during August, 21,600 pounds All direct materials are placed in process at the beginning of production. a. Prepare a cost of production report, presenting the following computations: 113,300 1. Direct materials and conversion equivalent units of production for August. 2. Direct materials and conversion costs per equivalent unit for August 3. Cost of goods finished during August. 4. Cost of work in process et August 31 If an amount is zero, enter in "O". For the cost per equivalent unit, round your answer to two decimal places Morning Brew Coffee Company Cost of Production Report-Roasting Department For the Month Ended 31 Units charged to production: Inventory in process, August1 Received from msterials storeroom Total units accounted for by the Roasting Department Urits to be assigned costs: Equivalent Units Whole Direct Units Materials Inwentory in process, August1 Started and completed in Aucust Transferred to finished gcods in August nventory in process, August 31 Total units to be assigned costs Costs per equvalent unit: Direct Materials Conversion Total costs for August in Roasting Department Total equivalent units Cost per equivalent unt ( Costs assigned to producton: Total Materials Conversion tnventory in process, August 1 Costs incurred in August Total costs accounted for by the Roastng Department Costs alocated to completed and partaly completed units: Inventory in process, August 1 balance To complete iventory in process, August 1 Cost of completed August 1 work in process Started and completed in August Transferred to firished goods in August (3) Lnventory in process, August 31 (4) Total costs assigned by the Roasting Department 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. Increase Change in direct materials cost per equivalent unit Change in conversion cost per equivalent unitExplanation / Answer
Morning Brew Coffee Company Cost of Production Report-Roasting Department For the Month Ended August 31 Unit Information Units charged to production: Inventory in process, August 1 700 Received from materials storeroom 22000 Total units accounted for by the Roasting Department 22700 Units to be assigned costs: Equivalent Units Whole Units Direct Materials Conversion Inventory in process, August 1 700 0 420 Started and completed in August 20900 20900 20900 Transferred to finished goods in August 21600 20900 21320 Inventory in process, August 31 1100 1100 660 Total units to be assigned costs 22700 22000 21980 Cost Information Costs per equivalent unit: Direct Materials Conversion Total costs for August in Roasting Department 113300 48356 Total equivalent units 22000 21980 Cost per equivalent unit 5.15 2.2 Costs charged to production: Direct Materials Conversion Total Inventory in process, August 1 4228 Costs incurred in August 161656 Total costs accounted for by the Roasting Department 165884 Cost allocated to completed and partially completed units: Inventory in process, August 1 balance 4228 To complete inventory in process, August 1 0 924 924 Cost of completed August 1 work in process 5152 Started and completed in August 107635 45980 153615 Transferred to Finished goods in August 158767 Inventory in process, August 31 5665 1452 7117 Total costs assigned by the Roasting Department 165884 2 Increase or Decrease Amount Change in direct materials cost per equivalent unit Decrease 0.05 =5.2-5.15 Change in conversion cost per equivalent unit Increase 0.1 =2.2-2.1