Question

1. 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.
   Date		Item	Debit		Credit		Balance
   							Debit		Credit
   July	1	Bal., 6,600 units, 2/5 completed					12,804
   	31	Direct materials, 297,000 units	534,600				547,404
   	31	Direct labor	119,000				666,404
   	31	Factory overhead	29,800				696,204
   	31	Goods transferred, 298,000 units			?
   	31	Bal., ? units, 2/5 completed					?

   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 The rate used to allocate costs between completed and partially completed production.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
   Total units accounted for by the Roasting Department
   Units to be assigned costs:
   		Equivalent Units
   	Whole Units	Direct Materials	Conversion
   Inventory in process, July 1
   Started and completed in July
   Transferred to Packing Department in July
   Inventory in process, July 31
   Total units to be assigned costs
   Cost Information
   Cost per equivalent unit:
   		Direct Materials	Conversion
   Total costs for July in Roasting Department		$	$
   Total equivalent units
   Cost per equivalent unit		$	$
   Costs assigned to production:
   	Direct Materials	Conversion	Total
   Inventory in process, July 1			$
   Costs incurred in July
   Total costs accounted for by the Roasting Department			$
   Costs allocated to completed and partially completed units:
   Inventory in process, July 1 balance			$
   To complete inventory in process, July 1	$	$
   Cost of completed July 1 work in process			$
   Started and completed in July
   Transferred to Molding Department in July			$
   Inventory in process, July 31
   Total costs assigned by the Roasting Department			$

   Feedback

   2. Assuming that the July 1 work in process inventory includes $11,220 of direct materials, determine the increase or decrease in the cost per equivalent unit for direct materials and conversion between June and July. If required, round your answers to the nearest cent.

   	Increase or Decrease	Amount
   Change in direct materials cost per equivalent unit	Decrease Increase	$
   Change in conversion cost per equivalent unit	Decrease Increase	$

   Feedback

   Feedback

Loading item

There was an error loading this item. If this continues to occur, please contact Technical Support.

Check My Work

• Previous
• Next

• 100% Correct
• Partially Correct
• Incorrect
• Needs Instructor Grading

Basic Calculatorclose

0

UseEntBSBSpCEHomCEnd

789+

456-

123*

0.=/

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			6600
Received from materials storeroom			297000
Total units accounted for by the Roasting Department			303600
Units to be assigned costs:
		Equivalent Units
	Whole Units	Direct Materials	Conversion
Inventory in process, July 1	6600	0	3960
Started and completed in July	291400	291400	291400
Transferred to Packing Department in July	298000	291400	295360
Inventory in process, July 31	5600	5600	2240
Total units to be assigned costs	303600	297000	297600
Cost Information
Costs per equivalent unit:
		Direct Materials	Conversion
Total costs for July in Roasting Department		534600	148800
Total equivalent units		297000	297600
Cost per equivalent unit		1.80	0.50
Costs charged to production:
	Direct Materials	Conversion	Total
Inventory in process, July 1			12804
Costs incurred in July			683400
Total costs accounted for by the Roasting Department			696204
Cost allocated to completed and partially completed units:
Inventory in process, July 1 balance			12804
To complete inventory in process, July 1	0	1980	1980
Cost of completed July 1 work in process			14784
Started and completed in July	524520	145700	670220
Transferred to Molding Department in July			685004
Inventory in process, July 31	10080	1120	11200
Total costs assigned by the Roasting Department			696204
2
	Increase or Decrease	Amount
Change in direct materials cost per equivalent unit	Increase	0.10	=1.8-(11220/6600)
Change in conversion cost per equivalent unit	Decrease	0.10	=0.5-((12804-11220)/(6600*2/5))