Cost of Production Report The debits to Work in Process—Roasting Department for
ID: 2555111 • Letter: C
Question
Cost of Production Report
The debits to Work in Process—Roasting Department for Morning Brew Coffee Company for August, together with information concerning production, are as follows:
All direct materials are placed in process at the beginning of production.
a. Prepare a cost of production report, presenting the following computations:
Direct materials and conversion equivalent units of production for August.
Direct materials and conversion costs per equivalent unit for August.
Cost of goods finished during August.
Cost of work in process at August 31.
If an amount is zero, enter in "0". For the cost per equivalent unit, round your answer to two decimal places.
b. Compute and evaluate the change in cost per equivalent unit for direct materials and conversion from the previous month (July). If required, round your answers to the nearest cent.
Work in process, August 1, 1,100 pounds, 60% completed $5,060* *Direct materials (1,100 X $3.7) $4,070 Conversion (1,100 X 60% X $1.5) $990 $5,060 Coffee beans added during August, 34,000 pounds 124,100 Conversion costs during August 53,952 Work in process, August 31, 1,800 pounds, 60% completed ? Goods finished during August, 33,300 pounds ?Explanation / Answer
b)
Morning Brew Coffee Company Cost of Production Report-Roasting Department For the Month Ended August 31 Unit Information Units charged to production: Inventory in process, August 1 1100 Received from materials storeroom 34000 Total units accounted for by the Roasting Department 35100 Units to be assigned costs: Equivalent Units Whole Units Direct Materials (1) Conversion (1) Inventory in process, August 1 1100 440 Started and completed in August 32200 32200 32200 Transferred to finished goods in August 33300 Inventory in process, August 31 1800 1800 1080 Total units to be assigned costs 34000 33720 Cost Information Costs per equivalent unit: Direct Materials Conversion Total costs for August in Roasting Department $124,100 $53,952 Total equivalent units 34000 33720 Cost per equivalent unit (2) $3.65 $1.60 Costs assigned to production: Direct Materials Conversion Total Inventory in process, August 1 4070 990 5060 Costs incurred in August 124100 53952 178052 Total costs accounted for by the Roasting Department 128170 54942 183112 Costs allocated to completed and partially completed units: Inventory in process, August 1 balance 4070 990 5060 To complete inventory in process, August 1 $ 704 704 Cost of completed August 1 work in process 4070 1694 5764 Started and completed in August $117,530 $51,520 $169,050 Transferred to finished goods in August (3) 174814 Inventory in process, August 31 (4) 6570 1728 8298 Total costs assigned by the Roasting Department 183112