Question

Cost of Production Report: Weighted average method Sunrise Coffee Company roasts and packs coffee beans. The process begins in the Roasting Department. From the Roasting Department, the coffee beans are transferred to the Packing Department. The following is a partial work in process account of the Roasting Department at December 31: ACCOUNT Work in Process-Roasting Department ACCOUNT NO. Balance Date Item Debit Credit Debit Credit Dec. 1 Bal., 19,400 units, 25% completed 68,870 31 Direct materials, 335,600 units 677,912 746,782 31 Direct labor 384,341 1,131,123 31 Factory overhead 553,077 1,684,200 31 Goods transferred, 338,500 units 31 Bal., 2 units, 75% completed Required: Prepare a cost of production report, using the weighted average method, and identify the missing amounts for Work in Process-Roasting Department. Assume that direct materials are placed in process during production. If required, round your cost per equivalent unit answer to two decimal places. Sunrise Coffee Company Cost of Production Report-Roasting Department For the Month Ended December 31 Unit Information Units charged to production: Inventory in process, December 1 Received from materials storeroom Total units accounted for by the Roasting Department Units to be assigned costs:

Answer 1

Product cost report

Unit information
Unit charges to production
Inventory process, November 1	19400
Received from material storeroom	335600
Total units accounted by the roasting department	355000
Units to be assigned costs
	Whole units	Equivalent units of production
Transferred to packing department in December	338500	338500
Inventory in process, December 31	16500	16500*75% = 12375
Total units to be assigned costs	355000	350875
Cost information
Cost per equivalent unit
total cost for December in roasting department		1684200
Equivalent unit		350875
Cost per equivalent unit		4.80
Cost assigned to production
Inventory in process, December 1		68870
Cost incurred in December		1615330
Total costs accounted for by the roasting Department		1684200
Cost allocated to completed and partially completed units
Transferred to packing department in December		1624800
Inventory in process, December 31		59400
Total costs assigned by the roasting department		1684200