Cost of Production Report: Average Cost Method Sunrise Coffee Company roasts and
ID: 2534290 • 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., 15,600 units, 25% completed 57,720 31 Direct materials, 269,900 units 566,790 624,510 31 Direct labor 322,410 946,920 31 Factory overhead 463,955 1,410,875 31 Goods transferred, 272,200 units ? ? 31 Bal., ? units, 75% completed ?Explanation / Answer
UNITS TO ACCOUNT FOR: Beginning Work in Process units 15,600 Add: Units Started in Process 269,900 Total Units to account for: 285,500 Equivalent Units: Whole units TOTAL % Completion Units Transferred to packing deptt 272200 100% 272,200 Ending Work in Process 13300 75% 9,975 Total Equivalent units 285500 282,175 TOTAL COST TO ACCOUNT FOR: COST PER EQUIVALENT UNIT: total Total cost added during the year 1,410,875 Equivalent Units 282,175 Cost per Equivalent unit 5 Cost charged to production: Total Inventory in Beg. 57720 Current cocst of manufacture 1353155 Total cost to be accounted for: 1410875 Cost allocated to completed and partially completed units: Cost of units transferred to packing deptt 1361000 Inventory in process in Dec 31 49875 Total cost assigned in Roasting 1410875