Cost of Production Report The debilts to Work in Process-Roasting Department for
ID: 2523567 • Letter: C
Question
Cost of Production Report The debilts to Work in Process-Roasting Department for St. Arbucks Coffee Company for July 2016, together with iformation concerming work in process, July 1, 1,100 pounds, 50% completed ,850- Direct materials (1,100 x $2.9) Conversion (1,100 x son, x s 1.2) $3,190 $660 $3,850 Coffee beans added during July, 34,000 pounds Conversion costs during July work in process, hay 31, 1,800 pounds, 40% completed Goods finished during Judy. 33,300 pounds All direct materials are placed in process at the beginning of production ?. Prepare a cost of production report, presenting the followng computations: 96,900 3,511 . Direct materials and conversion equvalent units of production for July 2. Direct materials and conversion costs per equhvalent unit for July 3. Cost of goods finished durieg July 4. Cost of work in process at July 31, 2016 if an amount is zero, enter in "0 For the cost per equivalent unit, round your answer to two deckmal places St. Arbucks Coffiee Company Cast of Production Repart-Roasing Department Units charged to production eveory in precess, July 1 Received from matenials storeroom Total unts accounted for by the Roastng Departmert Units to be insigned costs Whale Usts nvenbory in process, July 1 Started and completed in Jly Trandferred to feshed goeds in ly wok savedExplanation / Answer
Answer 1. St. Arbucks Coffee Company Cost of Production Report - Roastting Department For the Month ended Jul 31, 2016 Particulars Equivalent Units Physical Units Materials Conversion Costs Units Information Units Charged to Production Inventory in process - Beginning - Jul 1 1,100 Received from Materials Storeroom 34,000 Total units accounted for by Roasting Department 35,100 Units accounted for Goods Units Completed & transferred out: Inventory in process - Beginning - Jul 1 1,100 - 550 (0% materials, 50% conversion costs) Started & Completed in July (33,300 - 1,100) 32,200 32,200 32,200 Inventory in process, Ending - Jul 31 1,800 1,800 720 (100% materials, 40% conversion costs) Total Units to be assigned costs 35,100 34,000 33,470 Cost Information Materials Conversion Costs Total Total Costs For July in Roasting Department WIP, Beginning 3,190 660 3,850 Cost added in current period 96,900 43,511 140,411 Total cost to be account for 100,090 44,171 144,261 Cost added in current period 96,900 43,511 140,411 Equivalent Units of work done in current Period 34,000 33,470 Cost per Equivalent Unit 2.85 1.30 4.15 Assignment of Costs: Goods Units and Completed out (33,300 Units) WIP, Beginning - 1,100 Units - - 3,850 Cost added to Beg. WIP in Current period - 715 715 (550 Units X $1.30) Total of Beginning Inventory - 715 4,565 Started and completed - 32,200 Units 91,770 41,860 133,630 (32,200 units X $2.85) (32,200 Units X $1.30) Total Cost of good units completed & transferred out 91,770 42,575 138,195 WIP, Ending - 1,800 Units 5,130 936 6,066 (1,800 units X $2.85) (720 Units X $1.30) Total Cost accounted For 96,900 43,511 144,261 Answer 2. Calculation of Cost per Unit - Jan 1 Materials Conversion Costs Total WIP - Jul 1, Cost 3,190 660 3,850 Equivalent No. of Unit - WIP - Jan 1 1,100 550 Cost pet Equivalent Unit 2.90 1.20 4.10 Materials Conversion Costs Total Cost per Equivalent Unit - Beginning Inventory 2.90 1.20 4.10 Cost per Equivalent Unit -May 2.85 1.30 4.15 Increase (Decrease) in Cost per Unit (0.05) 0.10 0.05