Cost of Production Report The debits to Work in Process—Roasting Department for
ID: 2572953 • Letter: C
Question
Cost of Production Report
The debits to Work in Process—Roasting Department for St. Arbucks Coffee Company for July 2016, 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 July.
Direct materials and conversion costs per equivalent unit for July.
Cost of goods finished during July.
Cost of work in process at July 31, 2016.
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 (June). If required, round your answers to the nearest cent.
Work in process, July 1, 1,000 pounds, 20% completed $5,180* *Direct materials (1,000 X $4.8) $4,800 Conversion (1,000 X 20% X $1.9) $380 $5,180 Coffee beans added during July, 31,000 pounds 147,250 Conversion costs during July 62,640 Work in process, July 31, 1,600 pounds, 70% completed ? Goods finished during July, 30,400 pounds ?Explanation / Answer
St. Arbucks Coffee Company Cost of Production Report-Roasting Department For the Month Ended July 31, 2016 Unit Information Units charged to production: Inventory in process, July 1 1000 Received from materials storeroom 31000 Total units accounted for by the Roasting Department 32000 Units to be assigned costs: Equivalent Units Whole Units Direct Materials (1) Conversion (1) Inventory in process, July 1 1000 0 800 Started and completed in July 29400 29400 29400 Transferred to finished goods in July 30400 29400 30200 Inventory in process, July 31 1600 1600 1120 Total units to be assigned costs 32000 31000 31320 Cost Information Costs per equivalent unit: Direct Materials Conversion Total costs for July in Roasting Department 147250 62640 Total equivalent units 31000 31320 Cost per equivalent unit (2) 4.75 2.00 Costs assigned to production: Direct Materials Conversion Total Inventory in process, July 1 5180 Costs incurred in July 209890 Total costs accounted for by the Roasting Department 215070 Cost allocated to completed and partially completed units: Inventory in process, July 1 balance 5180 To complete inventory in process, July 1 0 1600 1600 Cost of completed July 1 work in process 6780 Started and completed in July 139650 58800 198450 Transferred to finished goods in July (3) 205230 Inventory in process, July 31 (4) 7600 2240 9840 Total costs assigned by the Roasting Department 215070 b Increase or Decrease Amount Change in direct materials cost per equivalent unit Decrease 0.05 Change in conversion cost per equivalent unit Increase 0.1