Cost of Production Report The debits to Work in Process-Roasting Department for
ID: 2422396 • Letter: C
Question
Cost of Production Report The debits to Work in Process-Roasting Department for St. Arbucks Coffee Company for July 2014, together with information concerning production, are as follows: work in process, July 1, 400 pounds, 50% completed $1,240 1,040 $200 $1,240 Direct materials (400 X $2.60) Conversion (400 X 50% X $1.00) 33,150 Coffee beans added during July, 13,000 pounds Conversion costs during July work in process, July 31, 700 pounds, 50% completed Goods finished during July, 12,700 pounds 14,135 Hide All direct materials are placed in process at the beginning of production a. Prepare a cost of production report, presenting the following computations: 1 1. Direct materials and conversion eqivalent units of production for July 2. Direct materials and conversion costs per equivalent unit for July 3. Cost of goods finished during July. 4. Cost of work in process at July 31, 2014. July If an amount is zero, enter in "O". For the cost per equivalent unit, round your answer to two decimal placesExplanation / Answer
1. Direct Material and conversion equivalent units of production in July:
2. Direct Material and conversion cost per equivalent unit in July:
Direct Material cost per unit = $33150 / 13000 = $2.55 per unit
Coversion cost per unit = 14135 / 12850 = $1.10 per unit
3.Cost of Goods finished during July:
4. Cost of Work in process on July 31, 2014:
Direct Material costs = 700 * $2.55 = $1785
Conversion costs = 350 * $1.10 = $385
Total costs of Closing Work in process = $2170
Change in the equivalent unit cost of Direct material = Decrease $0.05 per unit
Change in the equivalent unit cost of Conversion Cost = Increase $0.10 per unit
Units Particulars Units Direct Materials Conversion costs 400 Work in process July 1 400 0 200 (50%) 13000 Beans introduced and Finished 12300 12300 (100%) 12300 (100%) Completed, goods finished & out 12700 Work in process July 31 700 700 (100%) 350 (50%) Total equivalent units in July 13000 12850