Question

the debits to work in process roasting department for morning brew codfee comapny for august, together woth informatuon concerning production, are as follows

Cost of Protection Report The debits to Work in Process --Roasting Department for Morning Brew Coffee Company for August, together with information concerning production, are as follows: Work in process, August 1, 500 pounds, 30% completed $1,795 "Direct materials (500 x $3.2) $1,600 Conversion (500 X 30% X $1.3) $195 $1,795 Coffee beans added during August, 16,000 pounds 50,400 Conversion costs during August 22,330 Work in process, August 31, 800 pounds, 50% completed Goods finished during August, 15,700 pounds All direct materials are placed in process at the beginning of production. a. Prepare a cost of production report, presenting the following computations: 1. Direct materials and conversion equivalent units of production for August 2. Direct materials and conversion o r equivalent unit for August 3. Cost of goods finished during August 4. Cost of work in process at August 31 If an amount is zero, enter in "0". For the cost per equivalent unit, round your answer to two decimal places. Morning Brew Coffee Company Cost of Production Report-Roasting Department For the Month Ended August 31 Unit Information Units charged to production: Inventory in process, August 1 Received from materials storeroom Total units accounted for by the Roasting Department Units to be assigned costs: Whole Units Equivalent Units Direct Materials Conversion (1) (1) Inventory in process, August 1 Started and completed in August Transferred to finished goods in August Inventory in process, August 31 Total units to be assigned costs Cost Information Costs per equivalent unit:

Answer 1

Morning Brew Coffee Company
Cost of Production Report- Roasting Department
For the Month Ended August 31
Unit Information
Unit charged to production:
Inventory in process, August 1			500
Received from materials storeroom			16000
Total units accounted for by the Roasting Department			16500
Units to be assigned costs:
		Equivalent Units
	Whole Units	Direct Materials (1)	Conversion (1)
Inventory in process, August 1	500	0	(500*70%)= 350
Started and completed in August	15200	15200	15200
Transferred to finished goods in August	15700	15200	15550
Inventory in process, August 31	800	800	(800*50%)= 400
Total units to be assigned costs	16500	16000	15950
Cost Information
Cost per equivalent units:
		Direct Materials	Conversion
Total cost for August in Roasting Department		$50400	$22330
Total equivalent units		16000	15950
Cost per equivalent units (2)		$3.15	$1.40
Costs assigned to production:
	Direct Materials	Conversion	Total
Inventory in process, August 1			$1795
Costs incurred in August			(50400+22330)= 72730
Total units accounted for by the Roasting Department			$74525
Costs allocated to completed and partially completed units:
Inventory in process, August 1 balance			$1795
To complete inventory in process, August 1	0	(350*$1.40)= 490	490
Cost of completed August 1 work in process			2285
Started and completed in August	(15200*$3.15)= 47880	(15200*$1.40)= 21280	69160
Transferred to finished goods in August (3)			$71445
Inventory in process, August 31 (4)	(800*$3.15)= 2520	(400*$1.40)= 560	3080
Total costs assigned by the Roasting Department			$74525

Started and completed in August= Received from materials storeroom-Work in process, August 31

= 16000-800= 15200

b)

	Increase or Decrease Amount
Change in direct materials cost per equivalent unit	Decrease	($3.15-3.20)= $(0.05)
Change in conversion cost per equivalent unit	Increase	($1.40-1.30)= $0.10