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.
Date		Item	Debit		Credit	Balance
						Debit		Credit
Dec.	1	Bal., 17,800 units, 75% completed				38,270
	31	Direct materials, 307,900 units	375,638			413,908
	31	Direct labor	204,090			617,998
	31	Factory overhead	293,689.5			911,687.5
	31	Goods transferred, 310,600 units			?	?
	31	Bal., ? units, 25% 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:
	Whole Units	Equivalent Units of Production
Transferred to Packing Department in December
Inventory in process, December 31
Total units to be assigned costs
Cost Information
Cost per equivalent unit:
		Costs
Total costs for December in Roasting Department		$
Total equivalent units
Cost per equivalent unit		$
Costs assigned to production:
Inventory in process, December 1		$
Costs incurred in December
Total costs accounted for by the Roasting Department		$
Costs allocated to completed and partially completed units:
Transferred to Packing Department in December		$
Inventory in process, December 31
Total costs assigned by the Roasting Department		$

Answer 1

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		17800
Received from materials storeroom		307900
Total units accounted for by the Roasting Department		325700
Units to be assigned costs:
	Whole Units	Equivalent Units of Production
Transferred to Packing Department in December	310600	310600
Inventory in process, December 31 (25% x 15100)	15100	3775
Total units to be assigned costs	325700	314375
Cost Information
Cost per equivalent unit:
		Costs
Total costs for December in Roasting Department		911687.5
Total equivalent units		314375
Cost per equivalent unit		2.90
Costs assigned to production:
Inventory in process, December 1		38270
Costs incurred in December		873417.5
Total costs accounted for by the Roasting Department		911687.5
Costs allocated to completed and partially completed units:
Transferred to Packing Department in December (310600 x $2.90)		900740
Inventory in process, December 31 (3775 x $2.90)		10947.5
Total costs assigned by the Roasting Department		911687.5