Question

eBook Calculator Print Item 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. Balance Date Item Debit Credit Debit Credit 12,320 554,400 566,720 677,720 July 1 Bal., 7,700 units, 1/5 completed 31 Direct materials, 346,500 units 31 Direct labor 31 Factory overhead 31 Goods transferred, 347,000 units 31 Bal., ? units, 1/5 completed Required: 111,000 27,760 705,480 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 Received from materials storeroom

Answer 1

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 Received from materials storeroom Total units accounted for by the Roasting Department 7700 346500 354200 Units to be assigned costs: Inventory in process, July 1 Started and completed in July (347000-7700) Transferred to Packing Department in July Inventory in process, July 31 (354200 - 347000) Total units to be assigned costs Whole Units 7700 339300 347000 7200 354200 Cost Information Equivalent Units Materials Conversion 0 6160 (7700*4/5) 339300 339300 339300 345460 7200 1440 (7200*1/5) 346500 346900 Costs per equivalent unit: Total costs for July in Roasting Department Total equivalent units Cost per equivalent unit Direct Materials Conversion 554400 138760 346500 346900 1.6 0.40

Costs charged to production: Direct Materials Conversion Total Inventory in process, July 1 Costs incurred in July Total costs accounted for by the Roasting Department 12320 693160 705480 2464 Cost allocated to completed and partially completed units: Inventory in process, July 1 balance To complete inventory in process, July 1 Cost of completed July 1 work in process Started and completed in July Transferred to Molding Department in July Inventory in process, July 31 Total costs assigned by the Roasting Department 542880 135720 12320 2464 14784 678600 693384 12096 705480 11520 576 60 2. Assuming that the July 1 work in process inventory includes $11550 of direct materials, determine the 61 increase or decrease in the cost per equivalent unit for direct materials and conversion between June and 62 July. If required, round your answers to two decimal places. From Current Period From Beginning Period (11550/7700) Increase 1.60 1.50 0.10

Conversion From Current Period From Beginning Period (12320-11550)/7700 Increase 0.40 0.10 0.30 The cost per equivalent unit of materials increased by $.10 per pound, and the cost per equivalent unit of conversion cost increased by $.30 per pound. Change in direct material cost per equivalent unit Change in Conversion cost per equivalent unit Increase or Dcrease Increase Increase Amount 0.10 0.30