Cost of Production Report The debits to Work in Process—Roasting Department for
ID: 2430126 • Letter: C
Question
Cost of Production Report
The debits to Work in Process—Roasting Department for Morning Brew Coffee Company for August, together with information concerning production, are as follows:
All direct materials are placed in process at the beginning of production.
a. Prepare a cost of production report, presenting the following computations:
Direct materials and conversion equivalent units of production for August.
Direct materials and conversion costs per equivalent unit for August.
Cost of goods finished during August.
Cost of work in process at August 31.
If an amount is zero, enter in "0". For the cost per equivalent unit, round your answer to two decimal places.
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.
Work in process, August 1, 1,200 pounds, 60% completed $5,208* *Direct materials (1,200 X $3.5) $4,200 Conversion (1,200 X 60% X $1.4) 1,008 $5,208 Coffee beans added during August, 38,000 pounds 131,100 Conversion costs during August 56,220 Work in process, August 31, 2,000 pounds, 50% completed ? Goods finished during August, 37,200 pounds ?Explanation / 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 1200 Received from materials storeroom 38000 Total units accounted for by the Roasting Department 39200 Units to be assigned costs: Equivalent Units Whole Units Direct Materials Conversion Inventory in process, August 1 1200 0 480 Started and completed in August 36000 36000 36000 Transferred to Packing Department in August 37200 36000 36480 Inventory in process, August 31 2000 2000 1000 Total units to be assigned costs 39200 38000 37480 Cost Information Costs per equivalent unit: Direct Materials Conversion Total costs for August in Roasting Department 131100 56220 Total equivalent units 38000 37480 Cost per equivalent unit 3.45 1.5 Costs charged to production: Direct Materials Conversion Total Inventory in process, August 1 5208 Costs incurred in August 187320 Total costs accounted for by the Roasting Department 192528 Cost allocated to completed and partially completed units: Inventory in process, August 1 balance 5208 To complete inventory in process, August 1 0 720 720 Cost of completed August 1 work in process 5928 Started and completed in August 124200 54000 178200 Transferred to Packing Department in August 184128 Inventory in process, August 31 6900 1500 8400 Total costs assigned by the Roasting Department 192528 2 Increase or Decrease Amount Change in direct materials cost per equivalent unit Decrease 0.05 Change in conversion cost per equivalent unit Increase 0.1