Question

Cost of Production Report Mana 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. Balance Date Item Debit Credit Debit Credit 643,500 July 1 Bal., 6,500 units, 3/5 completed 31 Direct materials, 292,500 units 31 Direct labor 31 Factory overhead 31 Goods transferred, 293,000 units 31 Bal., 2 units, 2/5 completed Required: 16,380 659,880 799,780 834,780 139,900 35,000 1. Prepare a cost of production report, and dentify the missing amounts for Work in Process --Roasting Department. If an amount is zero, enter "o". 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

Answer 1

		Material	Conversion Costs
Units to account for
Beginning Work in process	6500
Units started	292500
Total Units to account for	299000
Units accounted for
Inventory in Process, Beginning	6500	0	2600
Started and completed	286500	286500	286500
Units transferred	293000	286500	289100
Equivalent units in ending WIP	6000	6000	2400
Total units accounted for	299000
Equivalent units of production		292500	291500

	Material	Conversion Costs
Cost added during the production	$   643,500	$      174,900
Equivalent units of production	292500	291500
Cost per Equivalent unit	$          2.20	$             0.60

	Material	Conversion Costs	Total
Inventory in Process, Beginning			$        16,380
Costs incurred			$      818,400
Total Costs to be accounted for			$      834,780
Costs allocated
Inventory in Process, Beginning			$        16,380
To completed beginning inventory	$              -	$           1,560	$          1,560
Total Cost of Work in Process			$        17,940
Started and completed	$   630,300	$      171,900	$      802,200
Transferred to Packing Department			$      820,140
Inventory in Process, Ending	$     13,200	$           1,440	$        14,640
Total Costs accounted for			$      834,780