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. Date Item Debit Credit Balance Debit Credit July 308,700 1 Bal., 4,900 units, 1/5 completed 31 Direct materials, 220,500 units 31 Direct labor 31 Factory overhead 31 Goods transferred, 221,000 units 31 Bal., ? units, 2/5 completed 6,762 315,462 368,662 381,996 53,200 13,334 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

Answer 1

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Answer 1
Hana Coffee Company					Started and completed in July
Cost of Production Report-Roasting Department					Goods finished in July-	221,000.00
For the Month Ended July 31		Equivalent Units			Less: Opening work in process	4,900.00
Unit information	Physical Units	Materials	Conversion		Started and completed in July	216,100.00	B
Units charged to production:
Inventory in process July 1	4,900.00
Received from materials storeroom	220,500.00
Total units accounted for by the Roasting Department	225,400.00
Units to be assigned costs:
Inventory in process July 1	4,900.00	-	3,920.00
Started and completed in July	216,100.00	216,100.00	216,100.00
Transferred to Packing Department in July	221,000.00	216,100.00	220,020.00
Inventory in process, July 31	4,400.00	4,400.00	1,760.00
Total units to be assigned costs:	225,400.00	220,500.00	221,780.00
Cost Information				Total
Costs per equivalent unit
Total costs for July in Roasting Department		308,700.00	66,534.00
Total equivalent units		220,500.00	221,780.00
Cost per equivalent unit		1.40	0.30
Costs assigned to production:
Inventory in process, July 1				6,762.00
Costs incurred in July		308,700.00	66,534.00	375,234.00
Total costs accounted for by the Roasting Department				381,996.00
Costs allocated to completed and partially completed units
Inventory in process, July 1 balance				6,762.00
To complete inventory in process, July 1		-	1,176.00	1,176.00
Cost of completed July 1 work in process				7,938.00
Started and completed in July		302,540.00	64,830.00	367,370.00
Transferred to Packing Department in July				375,308.00
Inventory in process, July 31		6,160.00	528.00	6,688.00
Total costs assigned by the Roasting Department				381,996.00
Answer 2
Calculation of beginning Costs per equivalent unit
Inventory in process July 1	4,900.00	4,900.00	980.00
Costs		6,370.00	392.00
Beginning Costs per equivalent unit		1.30	0.40
Costs per equivalent unit for July		1.40	0.30
Change		(0.10)	0.10
		Increase	Decrease