Cost of Production Report: Average Cost Method Sunrise Coffee Company roasts and
ID: 2511899 • Letter: C
Question
Cost of Production Report: Average Cost Method
Sunrise Coffee Company roasts and packs coffee beans. The process begins in the Roasting Department. From the Roasting Department, the coffee beans are transferred to the Packing Department. The following is a partial work in process account of the Roasting Department at December 31:
Required:
Prepare a cost of production report, using the average cost method, and identify the missing amounts for Work in Process—Roasting Department. If required, round your cost per equivalent unit answer to two decimal places.
ACCOUNT Work in Process-Roasting Department ACCOUNT NO. Date Item Debit Credit Balance Debit Credit Dec. 1 Bal., 13,200 units, 80% completed 37,092 31 Direct materials, 228,400 units 365,440 402,532 31 Direct labor 199,051 601,583 31 Factory overhead 286,439 888,022 31 Goods transferred, 230,300 units ? ? 31 Bal., ? units, 30% completed ?Explanation / Answer
Sunrise Coffee Company Cost of Production Report-Roasting Department For the Month Ended December 31 Unit Information Units to account for during production: Inventory in process, December 1 13200 Received from materials storeroom 228400 Total units accounted for by the Roasting Department 241600 Units to be assigned costs: Whole Units Equivalent Units of Production Transferred to Packing Department in December 230300 230300 Inventory in process, December 31 11300 3390 Total units to be assigned costs 241600 233690 Cost Information Unit costs: Costs Total costs for December in Roasting Department 888022 Total equivalent units 233690 Cost per equivalent unit 3.8 Costs charged to production: Inventory in process, December 1 37092 Costs incurred in December 850930 Total costs accounted for by the Roasting Department 888022 Costs allocated to completed and partially completed units: Transferred to Packing Department in December 875140 Inventory in process, December 31 12882 Total costs assigned by the Roasting Department 888022