Question

Cost of Production 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, 1,000 pounds, 10% completed $2,910* *Direct materials (1,000 X $2.8) $2,800 Conversion (1,000 X 10% X $1.1) $110 $2,910 Coffee beans added during August, 31,000 pounds 85,250 Conversion costs during August 37,512 Work in process, August 31, 1,600 pounds, 60% completed Goods finished during August, 30,400 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 costs per 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.

Answer 1

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			1000
Received from materials storeroom			31000
Total units accounted for by the Roasting Department			32000
Units to be assigned costs:
		Equivalent Units
	Whole Units	Direct Materials	Conversion
Inventory in process, August 1	1000	0	900
Started and completed in August	29400	29400	29400
Transferred to Finished goods in August	30400	29400	30300
Inventory in process, August 31	1600	1600	960
Total units to be assigned costs	32000	31000	31260
Cost Information
Costs per equivalent unit:
		Direct Materials	Conversion
Total costs for August in Roasting Department		85250	37512
Total equivalent units		31000	31260
Cost per equivalent unit		2.75	1.20
Costs charged to production:
	Direct Materials	Conversion	Total
Inventory in process, August 1			2910
Costs incurred in August			122762
Total costs accounted for by the Roasting Department			125672
Cost allocated to completed and partially completed units:
Inventory in process, August 1 balance			2910
To complete inventory in process, August 1	0	1080	1080
Cost of completed August 1 work in process			3990
Started and completed in August	80850	35280	116130
Transferred to Finished goods in August			120120
Inventory in process, August 31	4400	1152	5552
Total costs assigned by the Roasting Department			125672
2
	Increase or Decrease	Amount
Change in direct materials cost per equivalent unit	Decrease	0.05	=2.8-2.75
Change in conversion cost per equivalent unit	Increase	0.10	=1.2-1.1