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 Date Item Debit Credit Debit Credit July 20,280 868,530 848,250 165,300 1,033,830 1 Bal., 6,500 units, 2/5 completed 31 Direct materials, 292,500 units 31 Direct labor 31 Factory overhead 31 Goods transferred, 293,000 units 31 Bal., ? units, 4/5 completed 41,340 1,075,170 Required: 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. 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 Received from materials storeroom 6,500 292,500 299,000 Total units accounted for by the Roasting Department Units to be assigned costs:

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			6500
Received from materials storeroom			292500
Total units accounted for by the Roasting Department			299000
Units to be assigned costs:
		Equivalent Units
	Whole Units	Direct Materials	Conversion
Inventory in process, July 1	6500	0	3900
Started and completed in July	286500	286500	286500
Transferred to Packing Department in July	293000	286500	290400
Inventory in process, July 31	6000	6000	4800
Total units to be assigned costs	299000	292500	295200
Cost Information
Costs per equivalent unit:
		Direct Materials	Conversion
Total costs for July in Roasting Department		848250	206640
Total equivalent units		292500	295200
Cost per equivalent unit		2.90	0.70
Costs charged to production:
	Direct Materials	Conversion	Total
Inventory in process, July 1			20280
Costs incurred in July			1054890
Total costs accounted for by the Roasting Department			1075170
Cost allocated to completed and partially completed units:
Inventory in process, July 1 balance			20280
To complete inventory in process, July 1	0	2730	2730
Cost of completed July 1 work in process			23010
Started and completed in July	830850	200550	1031400
Transferred to Molding Department in July			1054410
Inventory in process, July 31	17400	3360	20760
Total costs assigned by the Roasting Department			1075170
2
	Increase or Decrease	Amount
Change in direct materials cost per equivalent unit	Increase	0.10	=2.9-(18200/6500)
Change in conversion cost per equivalent unit	Decrease	0.10	=0.7-((20280-18200)/(6500*2/5))