Question

Cost of Production Report: Average Cost Method The increases to Work in Process-Roasting Department for Boston Coffee Company for March 2016 as well as information concerning production are as follows: work in process, March 1, 2,800 pounds, 10% completed Coffee beans added during March, 172,800 pounds Conversion costs during March work in process, March 31, 1,700 pounds, 80% completed Goods finished during March, 173,900 pounds Prepare a cost of production report, $21,030 725,580 304,950 using the average cost method. If required, round cost per equivalent unit answers to the nearest cent. Boston Coffee Company Cost of Production Report-Roasting Department Unit Information Units to account for during production: Inventory in process, March 1 Received from materials storeroom Total units accounted for by the Roasting Department Units to be assigned costs Whole Equivalent Units Units of

Answer 1

	unit information
	inventory in process,March 1				2,800
	received from materials storeroom				172,800
	total units accounted for				175,600
					Whole	Equivalent units
					units	of production
	units to be assigned costs
	transferred to finished goods in March				173,900	173,900
	inventory in process,March 31				1,700	1360
	total units to be assinged costs				175,600	175,260
	Cost Information
	costs per equivalent units
					costs
	total costs for March in roasting deptt				1,051,560
	total equivalent units				175,260
	cost per equivalent units				6
	Costs charged to production:
	inventory in process,march 1				21,030
	costs incurred in march				1,030,530
	total costs accounted for by roasting deptt				1,051,560
	costs allocated to completed &partially
	Transferred to finished goods in march				1043400
	inventory in process,March 31				8160
	total costs assigned by roasting deptt				1051560