Cost of Production Report: Average Cost Method Sunrise Coffee Company roasts and
ID: 2538151 • 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., 13,700 units, 75% completed 59,869 31 Direct materials, 237,000 units 587,760 647,629 31 Direct labor 319,870 967,499 31 Factory overhead 460,301 1,427,800 31 Goods transferred, 239,100 units ? ? 31 Bal., ? units, 25% completed ?Explanation / Answer
unit information inventory in process,december 1 13,700 received from materials storeroom 237,000 total units accounted for 250,700 Whole Equivalent units units of production units to be assigned costs transferred to packing department 239,100 239,100 inventory in process,december31 11,600 2900 total units to be assinged costs 250,700 242,000 Cost Information Unit costs: costs total costs for december in roasting deptt 1,427,800 total equivalent units 242,000 cost per equivalent units 5.9 Costs charged to production: inventory in process,december 1 59,869 costs incurred in december 1,367,931 total costs accounted for by roasting deptt 1,427,800 costs allocated to completed &partially transferred to packing deptt in december 1410690 inventory in process,december 31 17110 total costs assigned by roasting deptt 1427800