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 | ? |
All direct materials are placed in process at the beginning of production.
a. Prepare a cost of production report, presenting the following computations:
If an amount is zero, enter in "0". For the cost per equivalent unit, round your answer to two decimal places.
Morning Brew Coffee Company | |||
Cost of Production Report-Roasting Department | |||
For the Month Ended August 31 | |||
Unit Information | |||
Units charged to production: | |||
Inventory in process, August 1 | |||
Received from materials storeroom | |||
Total units accounted for by the Roasting Department | |||
Units to be assigned costs: | |||
Equivalent Units | |||
Whole Units | Direct Materials (1) | Conversion (1) | |
Inventory in process, August 1 | |||
Started and completed in August | |||
Transferred to finished goods in August | |||
Inventory in process, August 31 | |||
Total units to be assigned costs | |||
Cost Information | |||
Costs per equivalent unit: | |||
Direct Materials | Conversion | ||
Total costs for August in Roasting Department | $ | $ | |
Total equivalent units | |||
Cost per equivalent unit (2) | $ | $ | |
Costs assigned to production: | |||
Direct Materials | Conversion | Total | |
Inventory in process, August 1 | $ | ||
Costs incurred in August | |||
Total costs accounted for by the Roasting Department | $ | ||
Costs allocated to completed and partially completed units: | |||
Inventory in process, August 1 balance | $ | ||
To complete inventory in process, August 1 | $ | $ | |
Cost of completed August 1 work in process | $ | ||
Started and completed in August | |||
Transferred to finished goods in August (3) | $ | ||
Inventory in process, August 31 (4) | |||
Total costs assigned by the Roasting Department | $ | ||
b. Compute and evaluate the change in cost per equivalent unit for direct materials and conversion from the previous month (July). If required, round your answers to the nearest cent.
Increase or Decrease | Amount | |
Change in direct materials cost per equivalent unit | $ | |
Change in conversion cost per equivalent unit |
Check My Work2 more Check My Work uses remaining.
Solution a:
Morning Brew Coffee Company | |||
Cost of Production Report-Roasting Department | |||
For the Month Ended August 31 | |||
Unit Information | |||
Units charged to production: | |||
Inventory in process, August 1 | 1200 | ||
Received from materials storeroom | 38000 | ||
Total units accounted for by the Roasting Department | 39200 | ||
Units to be assigned costs: | |||
Equivalent Units | |||
Whole Units | Direct Materials (1) | Conversion (1) | |
Inventory in process, August 1 | 1200 | 0 | 720 |
Started and completed in August | 36000 | 36000 | 36000 |
Transferred to finished goods in August | 37200 | 36000 | 36720 |
Inventory in process, August 31 | 2000 | 2000 | 1200 |
Total units to be assigned costs | 39200 | 38000 | 37920 |
Cost Information | |||
Costs per equivalent unit: | |||
Direct Materials | Conversion | ||
Total costs for August in Roasting Department | $150,100.00 | $64,464.00 | |
Total equivalent units | 38000 | 37920 | |
Cost per equivalent unit (2) | $3.95 | $1.70 | |
Costs assigned to production: | |||
Direct Materials | Conversion | Total | |
Inventory in process, August 1 | $4,800.00 | $768.00 | $5,568.00 |
Costs incurred in August | $150,100.00 | $64,464.00 | $214,564.00 |
Total costs accounted for by the Roasting Department | $154,900.00 | $65,232.00 | $220,132.00 |
Costs allocated to completed and partially completed units: | |||
Inventory in process, August 1 balance | $4,800.00 | $768.00 | $5,568.00 |
To complete inventory in process, August 1 | $0.00 | $1,224.00 | $1,224.00 |
Cost of completed August 1 work in process | $4,800.00 | $1,992.00 | $6,792.00 |
Started and completed in August | $142,200.00 | $61,200.00 | $203,400.00 |
Transferred to finished goods in August (3) | $147,000.00 | $63,192.00 | $210,192.00 |
Inventory in process, August 31 (4) | $7,900.00 | $2,040.00 | $9,940.00 |
Total costs assigned by the Roasting Department | $154,900.00 | $65,232.00 | $220,132.00 |
Solution b:
Particulars | Increase or Decrease | Amount |
Change in direct materials cost per equivalent unit ($3.95 - $4) | Decrease | $0.05 |
Change in conversion cost per equivalent unit ($1.70 - $1.60) | Increase | $0.10 |
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, 400 pounds, 30% completed $1,476* *Direct materials (400 X $3.3) $1,320 Conversion (400 X 30% X $1.3) $156 $1,476 Coffee beans added during August, 13,000 pounds 42,250 Conversion costs during August 18,102 Work in process, August 31, 700 pounds, 50% completed ? Goods finished during August, 12,700 pounds ?...
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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, 600 pounds, 30% completed $2,292* *Direct materials (600 X $3.4) $2,040 Conversion (600 X 30% X $1.4) $252 $2,292 Coffee beans added during August, 19,000 pounds 63,650 Conversion costs during August 28,080 Work in process, August 31, 1,000 pounds, 30% completed ? Goods finished during August, 18,600 pounds ?...
Cost of Production Report The debits to Work in Process—Roasting Department for Morning Brew Coffee Company for August 2016, together with information concerning production, are as follows: Work in process, August 1, 700 pounds, 20% completed $ 3,479* *Direct materials (700 X $4.70) $3,290 Conversion (700 X 20% X $1.35) 189 $3,479 Coffee beans added during August, 14,300 pounds 65,780 Conversion costs during August 21,942 Work in process, August 31, 400 pounds, 42% completed ? Goods finished during August, 14,600...
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, 60% completed $3,582* *Direct materials (900 X $3.2) $2,880 Conversion (900 X 60% X $1.3) $702 $3,582 Coffee beans added during August, 28,000 pounds 88,200 Conversion costs during August 38,724 Work in process, August 31, 1,400 pounds, 50% completed ? Goods finished during August, 27,500 pounds ?...
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 $4,950* *Direct materials (900 X $4.9) $4,410 Conversion (900 X 30% X $2) $540 $4,950 Coffee beans added during August, 28,000 pounds 135,800 Conversion costs during August 58,359 Work in process, August 31, 1,400 pounds, 40% completed ? Goods finished during August, 27,500 pounds ?...
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, 1,100 pounds, 50% completed $4,345* *Direct materials (1,100 X $3.3) $3,630 Conversion (1,100 X 50% X $1.3) $715 $4,345 Coffee beans added during August, 34,000 pounds 110,500 Conversion costs during August 46,606 Work in process, August 31, 1,800 pounds, 30% completed ? Goods finished during August, 33,300 pounds ?...
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, 700 pounds, 40% completed $4,396* *Direct materials (700 X $5.4) $3,780 Conversion (700 X 40% X $2.2) $616 $4,396 Coffee beans added during August, 22,000 pounds 117,700 Conversion costs during August 50,048 Work in process, August 31, 1,100 pounds, 40% completed ? Goods finished during August, 21,600 pounds ?...
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, 10% completed $2,910* *Direct materials (1,000 X $2.8) $2,800 Conversion (1,000 X 10% X $1.1) $110 $2,910 Coffee beans added during August, 31,000 pounds 85,250 Conversion costs during August 37,512 Work in process, August 31, 1,600 pounds, 60% completed Goods finished during August, 30,400 pounds All direct...
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