Cost of Production Report: Average Cost Method The increases to Work in Process-
ID: 2821712 • Letter: C
Question
Cost of Production Report: Average Cost Method The increases to Work in Process-Roasting Department for Highlands Coffee Company for May as well as information concerning production are as follows: $12,990 448,110 188,340 Work in process, May 1, 1,300 pounds, 10% completed Coffee beans added during May, 80,200 pounds Conversion costs during May Work in process, May 31, 800 pounds, 60% completed Goods finished during May, 80,700 pounds Prepare a cost of production report for May, using the average cost method. If required, round cost per equivalent unit answers to the nearest cent. Highlands Coffee Company Cost of Production Report-Roasting Department For Unit Information Units charged to production Inventory in process, May 1 Recelved from materials storeroom Total units accounted for by the Roasting Department Units to be assigned costs: Whole Equivalent Units Units of Production Transferred to finished goods in May Inventory in process, May 31 Total units to be assigned costsExplanation / Answer
Highlands Coffee Company Costof Production Report-Roasting Department For the Month Ended May 31 Unit information Units Charged to production Inventory in process, May 1 1300 Received from materials storeroom 80200 Total Units accounted for by theRoasting Department 81500 Units to be assigned costs: Whole units Equivalent units of production Transferred to finished goods in May 80700 80700 Inventory in process, May 31(60% completed) 800 640 Total Units to be assigned costs 81500 81340 Cost Information Cost per equivalent unit Costs Total costs for May in Roasting Department 649440 Total Equivalents units 81340 Cost per equivalent unit 7.984263585 Costs assigned to production Inventory in process, May 1 $12,990 Costs incurred in May 636450 Total costs accounted for by the Roasting Department $649,440 Costs allocated to completed and partially completed units Transferred to finished goods in May 7.98*80700 644330.0713 Inventory in process, May 31 (800*60%*7.98) 5109.928694 Total costs assigned by the Roasting Department 649440