Question

Cost of Production Report: Average Cost Method Sunrise Coffee Company roasts and packs coffee beans. The process begins in the Roasting Department. From the Roasting Department, the coffee beans are transferred to the Packing Department. The following is partial work in process account of the Roasting Department at December 31: ACCOUNT Work in Process-Hosting Department ACCOUNT NO. Balance Date Item Debit Credit - Debit Credit Dec. 1 Bal, 14,30 , 30% completed 31 Direct materials, 247.400 units 31 Direct labor 457,960 415,632 237,423 41.657 1,037,040 31 Factory overhead 31 Goods transferred, 249,500 units 31 Bal units, completed Required: Prepare a cost of production report, places the average cost method, and dentify the missing amounts for ork in Process i ng Department if required, round your cost per e vent unt er to two decimal Sunrise Coffee Company Cost of Production Report-Roasting Department For the Month December 31 Unit Information Units charged to production Inventory in proces December Received from materials toreroom Total units accounted for by the Roasting Department Units to be red costs

Answer 1

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Solution: Step.1 Unit Reconciliation: Particulars Inventory in process, Dec 1 Received from Weaving deparment Total Unit accounted for by the roasting department Units 14300 247400 261700 Step.2 Particulars Transferred to packaging department Inventory in process, Dec 31 Total units to be assigned costs Equivalent units: Whole % EUP EUP 249500 100% 249500 12200 80% 9760 261700 259260 Step.3 Cost per equivalent unit: Particulars Total Cost for December in Roasting department Total Equivalent units Cost per equivalent unit Costs 1037040 259260 $ 4.00 Step 4 42328 994712 1037040 Cost assigned to production: Inventory in process, December 1 Cost incurred in December Total Cost to be Accounted For: Costs allocated to completed and partially completed units: Transferred to Packing department (249500*4) Inventory in process, December 31 (9760*4) Total Cost Assigned by the roasting department 998000 $ 39,040 1037040