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., 6,400 units, 3/5 completed 20,992 31 Direct materials, 288,000 units 835,200 856,192 31 Direct labor 161,500 1,017,692 31 Factory overhead 40,380 1,058,072 31 Goods transferred, 289,000 units ? 31 Bal., ? units, 3/5 completed ?

Answer 1

А B с D 1 Hana Coffee Company 2 Cost of Production Report-Roasting Department 3 For the Month Ended July 31 4 Unit Information 5 Units charged to production: 6 Inventory in process, July 1 6,400 7 Received from materials storeroom 288,000 8 Total units accounted for by the Roasting Department 294,400 9 Units to be assigned costs: 10 Equivalent Units 11 Whole Units Direct Materials Conversion 12 Inventory in process, July 1 6,400 2,560 13 Started and completed in July 282,600 282,600 282,600 14 Transferred to Packing Department in July 289,000 282,600 285,160 15 Inventory in process, July 31 5,400 5,400 3,240 16 Total units to be assigned costs 294,400 288,000 288,400 17 Cost Information 18 Costs per equivalent unit: 19 Direct Materials Conversion 20 Total costs for July in Roasting Department $ 835,200 $ 201,880 21 Total equivalent units 288,000 288,400 22 Cost per equivalent unit $ 2.90$ 0.70 23 Costs charged to production:

24 Direct Materials Conversion Total $ 20,992 $ 1,037,080 $ 1,058,072 $ $ $ 819,540$ 25 Inventory in process, July 1 26 Costs incurred in July 27 Total costs accounted for by the Roasting Department 28 Cost allocated to completed and partially completed units: 29 Inventory in process, July 1 balance 30 To complete inventory in process, July 1 31 Cost of completed July 1 work in process 32 Started and completed in July 33 Transferred to Packing Department in July 34 Inventory in process, July 31 35 Total costs assigned by the Roasting Department 36 37 2) 38 Cost of beginning work in process 39 Equivalent units 40 Cost per equivalent unit 41 20992 1,792 $ 1,792 $ 22,784 197,820 $ 1,017,360 $ 1,040,144 17,928 $ 1,058,072 $ 15,660$ 2,268 $ Direct Materials Conversion $ 17,920$ 3,072 6400 3840 $ 2.80 $ 0.80 Increase or Amount 42 43 Change in direct materials cost per equivalent unit 44 Change in conversion cost per equivalent unit Decrease Increase Decrease 0.10 $ $ 0.10

D A B C 1 Hana Coffee Company 2 Cost of Production Report-Roasting Department 3 For the Month Ended July 31 4 Unit Information 5 Units charged to production: 6 Inventory in process, July 1 6400 7 Received from materials storeroom 288000 8 Total units accounted for by the Roasting Department =+D6+D7 9 Units to be assigned costs: 10 Equivalent Units 11 Whole Units Direct Materials Conversion 12 Inventory in process, July 1 6400 0 =+B12*(1-3/5) 13 Started and completed in July =+B14-B12 =+B13*100% =+B13*100% 14 Transferred to Packing Department in July 289000 =+C12+C13 =+D12+D13 15 Inventory in process, July 31 =+B16-B14 =+B15*100% =+B15*3/5 16 Total units to be assigned costs =+D8 =+C14+C15 =+D14+D15 17 Cost Information 18 Costs per equivalent unit: 19 Direct Materials Conversion 20 Total costs for July in Roasting Department 835200 =161500+40380 21 Total equivalent units =+C16 =+D16 22 Cost per equivalent unit =+C20/C21 =+D20/D21 23 Costs charged to production:

24 Direct Materials Conversion Total 20992 =835200+161500+40380 =+D25+D26 20992 =+C12*C22 =+D12*D22 =+B30+C30 =+D29+D30 =+C13*C22 =+D13*D22 25 Inventory in process, July 1 26 Costs incurred in July 27 Total costs accounted for by the Roasting Department 28 Cost allocated to completed and partially completed units: 29 Inventory in process, July 1 balance 30 To complete inventory in process, July 1 31 Cost of completed July 1 work in process 32 Started and completed in July 33 Transferred to Packing Department in July 34 Inventory in process, July 31 35 Total costs assigned by the Roasting Department 36 37 2) 38 Cost of beginning work in process 39 Equivalent units 40 Cost per equivalent unit 41 =+B32+C32 =+D31+D32 =+C15*C22 =+D15*D22 =+B34+C34 =+D33+D34 Direct Materials Conversion 17920 =20992-B38 =6400*100% =6400*3/5 =+B38/B39 =+C38/C39 Amount 42 43 Change in direct materials cost per equivalent unit 44 Change in conversion cost per equivalent unit Increase or Decrease Increase Decrease =2.9-2.8 1=0.8-0.7