Cost of Production Report The debits to Work in Process—Roasting Department for
ID: 2473635 • Letter: C
Question
Cost of Production Report The debits to Work in Process—Roasting Department for Morning Brew Coffee Company for August 2016, together with information concerning production, are as follows: Work in process, August 1, 700 pounds, 20% completed $ 3,479* *Direct materials (700 X $4.70) $3,290 Conversion (700 X 20% X $1.35) 189 $3,479 Coffee beans added during August, 14,300 pounds 65,780 Conversion costs during August 21,942 Work in process, August 31, 400 pounds, 42% completed ? Goods finished during August, 14,600 pounds ?
All direct materials are placed in process at the beginning of production.
a. Prepare a cost of production report, presenting the following computations:
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, 2016.
If an amount is zero, enter in "0". For the cost per equivalent unit, round your answer to the nearest cent.
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 two decimal places.
Morning Brew Coffee Company Cost of Production Report—Roasting Department For the Month Ended August 31, 2016 Unit Information Units charged to production: Inventory in process, August 1 Received from materials storeroom Total units accounted for by the Roasting Department Units to be assigned costs: Equivalent Units Whole Units Direct Materials (1) Conversion (1) Inventory in process, August 1 Started and completed in August Transferred to finished goods in August Inventory in process, August 31 Total units to be assigned costs Cost Information Costs per equivalent unit: Direct Materials Conversion Total costs for August in Roasting Department $ $ Total equivalent units Cost per equivalent unit (2) $ $ Costs assigned to production: Direct Materials Conversion Total Inventory in process, August 1 $ Costs incurred in August Total costs accounted for by the Roasting Department $ Costs allocated to completed and partially completed units: Inventory in process, August 1 balance $ To complete inventory in process, August 1 $ $ Cost of completed August 1 work in process $ Started and completed in August Transferred to finished goods in August (3) $ Inventory 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 two decimal places.
Increase or Decrease Amount Change in direct materials cost per equivalent unit $ Change in conversion cost per equivalent unit $Explanation / Answer
Production cost statement
Equivalent Units
Flow of physical units
Units to Account for (or Input)
Physical Units
Completion Percentage
Direct Material
Conversion Cost
Beginning Work in Progress (Aug'1)
700
Direct Material (100%*700)
100%
-700
Conversion cost (700*20%)
20%
-140
Units started in August
14300
Total Units to Account for (Total Input)
15000
Units Accounted for (or Ourput)
Beginning WIP completed
700
100%
700
700
Units started and completed this period
13900
100%
13900
13900
Ending WIP
400
Direct Material
100%
400
Conversion cost
42%
168
Total Units Accoounted for
15000
14300
14628
Flow of costs
Costs to be assigned (or Input)
Total Costs
Direct Material
Conversion Cost
Beginning WIP (Aug'1)
3479
Cost added in current period
87722
65780
21942
Total cost to account for (Total Input)
91201
Divided by total equivalent units
14300
14628
Cost per equivalent units
6.1
4.6
1.5
Cost Assigned (Or Output)
Total Cost
Transferred Out
Ending WIP
Beginning WIP Cost
3479
3479
0
Conversion cost to complete beginning WIP
(700-140)*1.5
840
840
0
Units started and completed this period (13900*6.1
84790
84790
0
Ending WIP Direct Material (400*4.6)
1840
1840
Ending WIP conversion cost (1.5*400)
600
600
Total cost assigned (Output)
91549
2440
Production cost statement
Equivalent Units
Flow of physical units
Units to Account for (or Input)
Physical Units
Completion Percentage
Direct Material
Conversion Cost
Beginning Work in Progress (Aug'1)
700
Direct Material (100%*700)
100%
-700
Conversion cost (700*20%)
20%
-140
Units started in August
14300
Total Units to Account for (Total Input)
15000
Units Accounted for (or Ourput)
Beginning WIP completed
700
100%
700
700
Units started and completed this period
13900
100%
13900
13900
Ending WIP
400
Direct Material
100%
400
Conversion cost
42%
168
Total Units Accoounted for
15000
14300
14628
Flow of costs
Costs to be assigned (or Input)
Total Costs
Direct Material
Conversion Cost
Beginning WIP (Aug'1)
3479
Cost added in current period
87722
65780
21942
Total cost to account for (Total Input)
91201
Divided by total equivalent units
14300
14628
Cost per equivalent units
6.1
4.6
1.5
Cost Assigned (Or Output)
Total Cost
Transferred Out
Ending WIP
Beginning WIP Cost
3479
3479
0
Conversion cost to complete beginning WIP
(700-140)*1.5
840
840
0
Units started and completed this period (13900*6.1
84790
84790
0
Ending WIP Direct Material (400*4.6)
1840
1840
Ending WIP conversion cost (1.5*400)
600
600
Total cost assigned (Output)
91549
2440