Cost of Production Report Fresh Mountain Coffee Company roasts and packs coffee
ID: 2414917 • Letter: C
Question
Cost of Production Report
Fresh Mountain 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 March 31, 2016:
Required:
1. Prepare a cost of production report, and identify the missing amounts for Work in Process—Roasting Department. If an amount is zero, enter in a zero "0". When computing The rate used to allocate costs between completed and partially completed production.cost per equivalent units, round to the nearest cent.
Started and completed in March
Total costs assigned by the Roasting Department
Assuming that the March 1 work in process inventory includes $5,700 of direct materials, determine the increase or decrease in the cost per equivalent uni
for direct materials and conversion between February and March. If required, round your answers to two decimal places.
change in conversion cost per equivalent unit decrease or increase
$
ACCOUNT Work in Process—Roasting Department ACCOUNT NO. Date Item Debit Credit Balance Debit Credit Mar. 1 Bal., 1,500 units, 30% completed 6,150 31 Direct materials, 22,300 units 86,970 93,120 31 Direct labor 11,900 105,020 31 Factory overhead 5,772 110,792 31 Goods transferred, 21,700 units ? 31 Bal., ? units, 40% completed ?Explanation / Answer
Fresh Mountain Coffee Company Accont Work in process roasting department Account No. Balance Date Item Debit Credit Debit Credit 1-Mar Balance 1500 units 30% completed $ 6,150.00 31-Mar Direct Material,22300 units $ 86,970.00 $ 93,120.00 31-Mar Direct Labor $ 11,900.00 $ 105,020.00 31-Mar Factory Overhead $ 5,772.00 $ 110,792.00 31-Mar Goods Transferred ,21700 units ? 31-Mar Bal ? units, 40% completed ? Eqivalent Units Units Whole units Direct Material Conversion Units charged to production 1500 Received from material storeroom 22300 Total units accounted fo Roasting Department 23800 Units to be assigned cost Inventory in process,March 1 1500 1050 started and completed in march 20200 20200 20200 Transferred to packing department in march 21700 20200 21250 Inventory in process,March 31 2100 2100 840 Total units to assigned cost 23800 22300 22090 Cost Direct Material Conversion Total cost Total cost for march in Roasting Department $ 86,970.00 $ 17,672.00 Total Eqivalent units 22300 22090 Cost per equivalent units 3.9 0.8 Cost charged to production: Inventory in process, march 1 $ 6,150.00 Cost incrred in march $ 104,642.00 Total cost acconting for by the Roasting department $ 110,792.00 Cost allocated to completed and partially completed units Inventory in process,March 1 balance $ 6,150.00 To complete inventory in process,March 1 $ - $ 840.00 $ 840.00 Cost of completed march 1 WIP $ 6,990.00 Started and completed in march $ 78,780.00 $ 16,160.00 $ 94,940.00 Transferred to packing department in march $ 101,930.00 Inventory in process,March 31 $ 8,190.00 $ 672.00 $ 8,862.00 Total cost assigned by the Roasting Department $ 110,792.00 Assming that March 1,WIP inventory includes $5,700 of direct materials. Direct Material 0.1 Decrease