Question

Cost of Production Report Hana Coffee Company roasts and packs coffee beans. The process begins by placing coffee beans into the Roasting Department. From the Roasting Department, coffee beans are then transferred to the Packing Department. The following is a partial work in process account of the Roasting Department at July 31: ACCOUNT Work in Process-Roasting Department ACCOUNT NO. Balance Debit Credit Date Item Debit Credit 6,300 270,000 276,300 330,500 July 1 Bal., 5,000 units, 2/5 completed 31 Direct materials, 225,000 units 31 Direct labor 31 Factory overhead 31 Goods transferred, 225,000 units 31 Bal., 2 units, 3/5 completed Required: 54,200 13,600 344,100 1. Prepare a cost of production report, and identify the missing amounts for Work in Process-Roasting Department. If an amount is zero, enter "0". When computing cost per equivalent units, round to two decimal places.

Answer 1

Hana Coffee Company
Cost of Production Report-Roasting Department
For the Month Ended July 31
Unit Information
Units charged to production:
Inventory in process, July 1			5000
Received from materials storeroom			225000
Total units accounted for by the Roasting Department			230000
Units to be assigned costs:
		Equivalent Units
	Whole Units	Direct Materials	Conversion
Inventory in process, July 1	5000	0	3000
Started and completed in July	220000	220000	220000
Transferred to Packing Department in July	225000	220000	223000
Inventory in process, July 31	5000	5000	3000
Total units to be assigned costs	230000	225000	226000
Cost Information
Costs per equivalent unit:
		Direct Materials	Conversion
Total costs for July in Roasting Department		270000	67800
Total equivalent units		225000	226000
Cost per equivalent unit		1.20	0.30
Costs charged to production:
	Direct Materials	Conversion	Total
Inventory in process, July 1			6300
Costs incurred in July			337800
Total costs accounted for by the Roasting Department			344100
Cost allocated to completed and partially completed units:
Inventory in process, July 1 balance			6300
To complete inventory in process, July 1	0	900	900
Cost of completed July 1 work in process			7200
Started and completed in July	264000	66000	330000
Transferred to Molding Department in July			337200
Inventory in process, July 31	6000	900	6900
Total costs assigned by the Roasting Department			344100
2
	Increase or Decrease	Amount
Change in direct materials cost per equivalent unit	Increase	0.10	=1.2-(5500/5000)
Change in conversion cost per equivalent unit	Decrease	0.10	=0.3-((6300-5500)/(5000*2/5))