Question

The debits to Work in Process—Roasting Department for Morning Brew Coffee Company for August, together with information concerning production, are as follows: Work in process, August 1, 500 pounds, 40% completed $2,370* *Direct materials (500 X $4.1) $2,050 Conversion (500 X 40% X $1.6) $320 $2,370 Coffee beans added during August, 16,000 pounds 64,800 Conversion costs during August 26,758 Work in process, August 31, 800 pounds, 30% completed ? Goods finished during August, 15,700 pounds ? 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. 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 Received from materials storeroom Total units accounted for by the Roasting Department Units to be assigned costs: Equivalent Units Whole Units Direct Materials (1) Conversion (1) Inventory in process, August 1 Started and completed in August Transferred to finished goods in August Inventory in process, August 31 Total units to be assigned costs Cost Information Costs per equivalent unit: Direct Materials Conversion Total costs for August in Roasting Department $ $ Total equivalent units Cost per equivalent unit (2) $ $ Costs assigned to production: Direct Materials Conversion Total Inventory in process, August 1 $ Costs incurred in August Total costs accounted for by the Roasting Department $ Costs allocated to completed and partially completed units: Inventory in process, August 1 balance $ To complete inventory in process, August 1 $ $ Cost of completed August 1 work in process $ Started and completed in August Transferred to finished goods in August (3) $ Inventory in process, August 31 (4) Total costs assigned by the Roasting Department $ 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. Increase or Decrease Amount Change in direct materials cost per equivalent unit $ Change in conversion cost per equivalent unit $

Answer 1

UNITS TO ACCOUNT FOR:
Beginning Work in Process units					500
Add: Units Started in Process					16,000
Total Units to account for:					16,500
Equivalent Units:
			Whole units	Material Cost		Conversion
				% Completion	Units	% Completion	Units
Units completed from Beg. WIP			500	0%	0	60%	300
Units started and completed			15200	100%	15,200	100%	15,200
Transferred to Molding deptt			15700		15,200		15,500
Ending Work in Process			800	100%	800	30%	240
Total Equivalent units					16,000		15,740
TOTAL COST TO ACCOUNT FOR:
COST PER EQUIVALENT UNIT:
				Material		Conversion
Total cost added during the year				64,800		26,758
Equivalent Units				16,000		15,740
Cost per Equivalent unit				4.05		1.7
Cost charged to production:				Material	Convesion	Total
Inventory in Beg.						2370
Current cocst of manufacture						91558
Total cost to be accounted for:						93928
Cost allocated to completed and partially completed units:
Inventory in Beg.						2370
Cost to complete				0	510	510
Cost of completed Beg. WIP						2880
Started and completed				61560	25840	87400
Transferred to next department						90280
Inveentory in Mar31				3240	408	3648
Total cost assigned						93928