The production cost report summarizes the activities that have taken place in a department or process...
The production cost report summarizes the activities that have taken place in a department or process over a period of time. Identify the major types of information found on a production cost report, and indicate who in the business organization uses this type of information and for what purpose the information is used.
Homework Answers
PRODUCTION COST REPORT (PCR)
A production cost report details the total cost, including raw materials and operating costs, of producing a product. Production cost reports (PCRs) are also sometimes called cost of production reports, product cost reports or process cost summaries. Production cost reports vary somewhat in level of detail provided, but in general they offer a comprehensive breakdown of all expenses associated with producing a product, and they typically conclude with a section that computes the equivalent cost per unit.
PCRs are very useful for business managers to enable them to make informed decisions about currently marketed products and product development. Having a thorough understanding of the factors involved in the cost of a company's products allows decision-makers at businesses to model various strategic long-term decisions regarding suppliers, product, mix, future product development and so forth.
A production cost report helps managers answer several important questions:
- How much does it cost to produce each unit of product for each department?
- Which production cost is the highest—direct materials, direct labor, or overhead?
- Where are we having difficulties in the production process? In any particular departments?
- Are we seeing any significant changes in unit costs for direct materials, direct labor, or overhead? If so, why?
- How many units flow through each processing department each month?
- Are improvements in the production process being reflected in the cost per unit from one month to the next?
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The production cost report summarizes the activities that have
taken place in a department or process...
Cost of Production Report: Average Cost Method The increases to Work in Process—Roasting Department for Boston...
Cost of Production Report: Average Cost Method The increases to Work in Process—Roasting Department for Boston Coffee Company for March 2016 as well as information concerning production are as follows: Work in process, March 1, 3,100 pounds, 40% completed $31,070 Coffee beans added during March, 191,300 pounds 1,072,040 Conversion costs during March 450,570 Work in process, March 31, 1,900 pounds, 90% completed _ Goods finished during March, 192,500 pounds _ Prepare a cost of production report, using the average cost...
Cost of Production Report: Average Cost Method The increases to Work in Process—Roasting Department for Boston...
Cost of Production Report: Average Cost Method The increases to Work in Process—Roasting Department for Boston Coffee Company for March 2016 as well as information concerning production are as follows: Work in process, March 1, 2,000 pounds, 50% completed $20,040 Coffee beans added during March, 123,400 pounds 691,550 Conversion costs during March 290,650 Work in process, March 31, 1,200 pounds, 90% completed _ Goods finished during March, 124,200 pounds _ Prepare a cost of production report, using the average cost...
Cost of Production Report: Average Cost Method The increases to Work in Process-Roasting Department for Highlands...
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: $9,490 327,500 Work in process, May 1, 1,900 pounds, 50% completed Coffee beans added during May, 117,200 pounds Conversion costs during May Work in process, May 31, 1,100 pounds, 60% completed Goods finished during May, 118,000 pounds 137,650 Prepare a cost of production report for May, using the average cost method....
Cost of Production Report: Average Cost Method The increases to Work in Process-Roasting Department for Boston...
Cost of Production Report: Average Cost Method The increases to Work in Process-Roasting Department for Boston Coffee Company for March 2016 as well as information concerning production are as follows: work in process, March 1, 2,800 pounds, 10% completed Coffee beans added during March, 172,800 pounds Conversion costs during March work in process, March 31, 1,700 pounds, 80% completed Goods finished during March, 173,900 pounds Prepare a cost of production report, $21,030 725,580 304,950 using the average cost method. If...
Cost of Production Report The debits to Work in Process -Roasting Department for Morning Brew Coffee...
Cost of Production Report 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. 900 pounds, 30% completed $3,735 Direct materials (900 X $3.7) $3,330 Conversion (900 X 30% X $1.5) $405 $3,735 Coffee beans added during August, 28,000 pounds 102,200 Conversion costs during August 44,240 Work in process, August 31, 1,400 pounds, 30% completed Goods finished during August, 27,500 pounds All...
Cost of Production Report: Weighted average method The increases to Work in Process --Roasting Department for...
Cost of Production Report: Weighted average method The increases to Work in Process --Roasting Department for Highlands Coffee Company for May as well as information concerning production are as follows: Work in process, May 1, 1,150 pounds, 40% completed $1,700 Coffee beans added during May, 10,900 pounds 28,600 Conversion costs during May 12,504 Work in profess, May 31, 800 pounds, 80% completed Goods finished during May, 11,250 pounds Prepare a cost of production report for May, using the weighted average...
Cost of Production Report The debits to Work in Process—Roasting Department for Morning Brew Coffee Company...
Cost of Production Report 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, 1,200 pounds, 40% completed $5,568* *Direct materials (1,200 X $4) $4,800 Conversion (1,200 X 40% X $1.6) $768 $5,568 Coffee beans added during August, 38,000 pounds 150,100 Conversion costs during August 64,464 Work in process, August 31, 2,000 pounds, 60% completed ? Goods finished during August, 37,200 pounds ?...
Cost of Production Report The debits to Work in Process --Roasting Department for Morning Brew Coffee...
Cost of Production Report 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, 1,200 pounds, completed "Direct materials (1.200 X 54.5) $5,400 Conversion (1,200 X 60% X 51.8) $1.00 36,696 Coffee beans added during August, 38,000 pounds 169,100 Conversion costs during August Work in process, August 31, 2,000 pounds, os completed Goods finished during August, 37,200 pounds All direct materials are...
Production Report Tomar Company produces vitamin energy drinks. The Mixing Department, the first process department, mixes...
Production Report Tomar Company produces vitamin energy drinks. The Mixing Department, the first process department, mixes the ingredients required for the drinks. The following data are for April: Work in process, April 1 — Quarts started 90,000 Quarts transferred out 75,000 Quarts in EWIP 15,000 Direct materials cost $153,000 Direct labor cost $165,000 Overhead applied $330,000 Direct materials are added throughout the process. Ending inventory is 40 percent complete with respect to direct labor and overhead. Required: Prepare a production...
Cost of Production Report The debits to Work in Process—Roasting Department for Morning Brew Coffee Company...
Cost of Production Report 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, 1,000 pounds, 40% completed $5,460* * Direct materials (1,000 X $4.7) $4,700 Conversion (1,000 X 40% X $1.9) $760 $5,460 144,150 60,960 Coffee beans added during August, 31,000 pounds Conversion costs during August Work in process, August 31, 1,600 pounds, 30% completed Goods finished during August, 30,400 pounds All...
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: $9,490 327,500 Work in process, May 1, 1,900 pounds, 50% completed Coffee beans added during May, 117,200 pounds Conversion costs during May Work in process, May 31, 1,100 pounds, 60% completed Goods finished during May, 118,000 pounds 137,650 Prepare a cost of production report for May, using the average cost method....
Cost of Production Report: Average Cost Method The increases to Work in Process-Roasting Department for Boston Coffee Company for March 2016 as well as information concerning production are as follows: work in process, March 1, 2,800 pounds, 10% completed Coffee beans added during March, 172,800 pounds Conversion costs during March work in process, March 31, 1,700 pounds, 80% completed Goods finished during March, 173,900 pounds Prepare a cost of production report, $21,030 725,580 304,950 using the average cost method. If...
Cost of Production Report 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. 900 pounds, 30% completed $3,735 Direct materials (900 X $3.7) $3,330 Conversion (900 X 30% X $1.5) $405 $3,735 Coffee beans added during August, 28,000 pounds 102,200 Conversion costs during August 44,240 Work in process, August 31, 1,400 pounds, 30% completed Goods finished during August, 27,500 pounds All...
Cost of Production Report: Weighted average method The increases to Work in Process --Roasting Department for Highlands Coffee Company for May as well as information concerning production are as follows: Work in process, May 1, 1,150 pounds, 40% completed $1,700 Coffee beans added during May, 10,900 pounds 28,600 Conversion costs during May 12,504 Work in profess, May 31, 800 pounds, 80% completed Goods finished during May, 11,250 pounds Prepare a cost of production report for May, using the weighted average...
Cost of Production Report 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, 1,200 pounds, completed "Direct materials (1.200 X 54.5) $5,400 Conversion (1,200 X 60% X 51.8) $1.00 36,696 Coffee beans added during August, 38,000 pounds 169,100 Conversion costs during August Work in process, August 31, 2,000 pounds, os completed Goods finished during August, 37,200 pounds All direct materials are...
Cost of Production Report 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, 1,000 pounds, 40% completed $5,460* * Direct materials (1,000 X $4.7) $4,700 Conversion (1,000 X 40% X $1.9) $760 $5,460 144,150 60,960 Coffee beans added during August, 31,000 pounds Conversion costs during August Work in process, August 31, 1,600 pounds, 30% completed Goods finished during August, 30,400 pounds All...
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