Cost of Production Report The debits to Work in Process—Roasting Department for
ID: 2557910 • 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.
2- The Converting Department of Soft Touch Towel and Tissue Company had 760 units in work in process at the beginning of the period, which were 70% complete. During the period, 16,000 units were completed and transferred to the Packing Department. There were 840 units in process at the end of the period, which were 70% complete. Direct materials are placed into the process at the beginning of production.
Determine the number of equivalent units of production with respect to direct materials and conversion costs. If an amount is zero, enter in "0".
Work in process, August 1, 600 pounds, 50% completed $3,540* *Direct materials (600 X $4.9) $2,940 Conversion (600 X 50% X $2) $600 $3,540 Coffee beans added during August, 19,000 pounds 92,150 Conversion costs during August 39,060 Work in process, August 31, 1,000 pounds, 30% completed ? Goods finished during August, 18,600 pounds ?Explanation / Answer
UNITS TO ACCOUNT FOR: Beginning Work in Process units 600 Add: Units Started in Process 19,000 Total Units to account for: 19,600 UNITS TO BE ACCOUNTED FOR: Equivalent Units: UNITS Material Cost Conversion % Completion Units % Completion Units Units completed from Beg. WIP 600 0% 0 50% 300 Units started and completed 18000 100% 18,000 100% 18,000 Ending Work in Process 1000 100% 1,000 30% 300 Total Equivalent units 19600 19,000 18,600 COST PER EQUIVALENT UNIT: Material Conversion Total cost added during the year 92,150 39,060 Equivalent Units 19,000 18,600 Cost per Equivalent unit 4.85 2.1 Cost assigned to production: Material Conversion Total Inventory in process Aug1 3540 Cost incurred in August 92150 39060 131210 Ttotal cost accounted for by Roasting deptt. 92150 39060 134750 Cost Allocated to completed and partially completed units: Inventory in process Aug1 3540 To Complete Inventory in process 0 630 630 Cost of Completed Aug1 WIP 4170 Started and completed units 87300 37800 125100 Transferred to Finished Goods 129270 Inventory in Process Aug31 4850 630 5480 Ttotal cost assigned 134750 Req b: Change in Material cost pr unit Decrease 0.05 Change in Conversion cost per unit Decrease 0.1 Qq2. UNITS TO BE ACCOUNTED FOR: Equivalent Units: UNITS Material Cost Conversion % Completion Units % Completion Units Units completed from Beg. WIP 760 0% 0 30% 228 Units started and completed 15240 100% 15,240 100% 15,240 Transferred to Packing deptt 16000 15,240 15,468 Ending Work in Process 840 100% 840 70% 588 Total Equivalent units 16840 16,080 16,056