Question

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: $4,565 Work in process, August 1, 1,100 pounds, 30% completed *Direct materials (1,100 X $3.70) Conversion (1,100 X 30% X $1.50) $4.070 495 $4,565 Coffee beans added during August, 34,000 pounds Conversion costs during August Work in process, August 31, 1,800 pounds, 70% completed Goods finished during August, 33,300 pounds All direct materials are placed in process at the beginning of production a. Prepare a cost of production report, presenting the following computations: 1. Direct materials and conversion equivalent units of production for August 2. Direct materials and conversion costs per equivalent unit for August 3. Cost of goods finished during August 4. Cost of work in process at August 31 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

Answer 1

Part 1

	Direct Materials	Conversion
Equivalent units	34000	34230

Part 2

	Direct Materials	Conversion
Cost per equivalent unit	$3.65	$1.60

Part 3

Cost of goods finished

$174847

Part 4

Cost of work in process at August 31

$8586

Morning Brew Coffee Company Cost of Production Report­Roasting Department For the Month Ended August 31
Unit information
Units charged to production:
Inventory in process, August 1	1100
Received from materials storeroom	34000
Total units accounted for by the Roasting Department	35100
Units to be assigned costs:
		Equivalent units
	Whole Units	Direct Materials	Conversion
Inventory in process, August 1 (1100*(1-30%))	1100	0	770
Started and completed in August	32200	32200	32200
Transferred to finished goods in August	33300	32200	32970
Inventory in process, August 31 (1800*70%)	1800	1800	1260
Total units to be assigned costs	35100	34000	34230
Cost Information
Costs per equivalent unit:
		Direct Materials	Conversion
Total costs for August in Roasting Department		124100	54768
Total equivalent units		34000	34230
Cost per equivalent unit		$3.65	$1.60
Costs assigned to production:
	Direct Materials	Conversion	Total
Inventory in process, August 1			4565
Costs incurred in August			178868
Total costs accounted for by the Roasting Department			$183433
Costs allocated to completed and partially completed units:
Inventory in process, August 1 balance			4565
To complete inventory in process, August 1	0	1232	1232
Cost of completed August 1 work in process			5797
Started and completed in August	117530	51520	169050
Transferred to finished goods in August			174847
Inventory in process, August 31	6570	2016	8586
Total costs assigned by the Roasting Department			$183433

770*1.60= 1232

32200*3.65 = 117530

32200*1.60 = 51520

1800*3.65 = 6570

1260*1.60 =