Cost of Production Report Hana Coffee Company roasts and packs coffee beans. The
ID: 2538148 • Letter: C
Question
Cost of Production Report
Hana Coffee Company roasts and packs coffee beans. The process begins by placing coffee beans into the Roasting Department. From the Roasting Department, coffee beans are then transferred to the Packing Department. The following is a partial work in process account of the Roasting Department at July 31:
Required:
1. Prepare a cost of production report, and identify the missing amounts for Work in Process—Roasting Department. If an amount is zero, enter "0". When computing cost per equivalent units, round to two decimal places.
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1. Calculate equivalent units for materials and conversion costs. Calculate the cost per equivalent unit for materials and conversion costs. Calculate the costs assigned to the beginning inventory, the units started and completed, and the ending inventory.
2. Assuming that the July 1 work in process inventory includes $14,500 of direct materials, determine the increase or decrease in the cost per equivalent unit for direct materials and conversion between February and July. If required, round your answers to the nearest cent.
ACCOUNT Work in Process—Roasting Department ACCOUNT NO. Date Item Debit Credit Balance Debit Credit July 1 Bal., 5,800 units, 3/5 completed 17,284 31 Direct materials, 261,000 units 678,600 695,884 31 Direct labor 146,800 842,684 31 Factory overhead 36,712 879,396 31 Goods transferred, 261,000 units ? 31 Bal., ? units, 4/5 completed ?Explanation / Answer
Hana Coffee Company Cost of Production Report-Roasting Department For the Month Ended July 31 Unit Information Units charged to production: Inventory in process, July 1 5800 Received from materials storeroom 261000 Total units accounted for by the Roasting Department 266800 Units to be assigned costs: Equivalent Units Whole Units Direct Materials Conversion Inventory in process, July 1 5800 0 2320 Started and completed in July 255200 255200 255200 Transferred to Packing Department in July 261000 255200 257520 Inventory in process, July 31 5800 5800 4640 Total units to be assigned costs 266800 261000 262160 Cost Information Costs per equivalent unit: Direct Materials Conversion Total costs for July in Roasting Department 678600 183512 Total equivalent units 261000 262160 Cost per equivalent unit 2.6 0.7 Costs charged to production: Direct Materials Conversion Total Inventory in process, July 1 17284 Costs incurred in July 862112 Total costs accounted for by the Roasting Department 879396 Cost allocated to completed and partially completed units: Inventory in process, July 1 balance 17284 To complete inventory in process, July 1 0 1624 1624 Cost of completed July 1 work in process 18908 Started and completed in July 663520 178640 842160 Transferred to Packing Department in July 861068 Inventory in process, July 31 15080 3248 18328 Total costs assigned by the Roasting Department 879396 2 Increase or Decrease Amount Change in direct materials cost per equivalent unit Increase 0.1 Change in conversion cost per equivalent unit Decrease 0.1