Question

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 July 1 Bal., 5,900 units, 4/5 completed 10,620 31 Direct materials, 265,500 units 398,250 408,870 31 Direct labor 85,000 493,870 31 Factory overhead 21,240 515,110 31 Goods transferred, 266,000 units 31 Bal., 2 units, 4/5 completed Required: ? 1. Prepare a cost of production report, and identify 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.

Answer 1

Honey Coffee Company Cost of Production Report-Roasting Department for the month ended July 31
Unit Information
Particulars	Amount	Amount	Amount
Units charged to Production:
Inventory in Process july 1	5,900
Received from Materials store room	2,65,000
Total units accounted by the Roasting Department	2,70,900
Units to be assigned costs:
	Equivalent Costs
	Whole Units	Direct Materials	Conversion
Inventory in ptocess, July 1	5,900	0	1,180 (5,900*(1-(4/5)
Started and completed in July	260,100 (266,000 - 5,900)	2,60,100	2,60,100
Transferred to Packing department in jUly	2,66,000	260100	2,61,280
Inventory in Process july 31	5,400	5,400 (265,500 - 260,100)	4,320 (5,400 * (4/5)
Total units to be assigned cost	2,71,400	2,65,500	2,65,600
Cost per equivalent unit
	Direct Materials	Conversion
Total Costs for July in Roasting Department	$398,250	$106,240
Total Equivalent Units	265,500	265,600
Cost per Equivalent unit	$1.5	$0.40
Cost Asssigned to Production
	Direct Materials	Conversion	Total
Inventory in Process july 1			$10,620
Costs incurred in July	$398,250	$106,240	$504,490
Total costs accounted for by roastng department			$515,110
Costs allocated to completed and partially completed units
Inventory in Process july 1 balance			$10,620
To complete inventory in process july 1	$0	$472 (5,900 (1-(4/5)*$0.40	$472
Cost of completed July 1 work in process			$11,092
started and completed in July	$390,150 (260,100 * $1.5)	$104,040 (260,100 * $0.4)	$494,190 (260,100 * $1.90)
Transferred to molding department in jUly			$505,282
Inventory in process July 31	$8,100 (5,400*$1.5)	$1,728 4,320*$0.4)	$9,828
Total costing assigned to roasting department			$515,110