Cost of Production Report The debits to Work in Process-Roasting Department for
ID: 2417429 • Letter: C
Question
Cost of Production Report The debits to Work in Process-Roasting Department for St. Arbucks Coffee Company for July 2016, together with information concerning production, are as follows: Work in process, July 1, 900 pounds, 40% completed $3,132* Direct materials (900 X $3) Conversion (900 X 40% X $1.2) $2,700 $432 $3,132 -82,600 Coffee beans added during July, 28,000 pounds Conversion costs during July Work in process, July 31, 1,400 pounds, 50% completed Goods finished during July, 27,500 pounds All direct materials are placed in process at the beginning of production. a. Prepare a cost of production report, presenting the following computations 36,192 1. Direct materials and conversion equivalent units of production for July. 2. Direct materials and conversion costs per equivalent unit for July. Cost of goods finished during July. 4. Cost of work in process at July 31, 2016.Explanation / Answer
a) Cost of equivalent units of production
Particulars Units Direct materials Conversion
% Units % Units
Opening inventoy 900 60 540
Units introduced 28000
Finished goods 27500 100 27500 100 27500
Work in progress 1400 100 1400 50 700
Equivalent Units 28900 28740
b) Cost per equivalent unit
Particulars Direct materials Conversion Total
Opening inventory 2700 432 3132
Cost incurred during period 82600 36192 118792
Total (A) 85300 36624 121924
Equivalent units (B) 28900 28740
Cost per unit (A/B) 2.95 1.27
c) Cost of goods finished
Direct materials ( 27500 units * $2.95) 81125
Conversion ( 27500 units * $1.27) 34925
Total 116050
d) Cost of Work in progress
Direct materials (1400 units * $2.95) 4130
Conversion ( 700units * $1.27) 889
Total 5019