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, 40% completed $5,460* * Direct materials (1,000 X $4.7) $4,700 Conversion (1,000 X 40% X $1.9) $760 $5,460 144,150 60,960 Coffee beans added during August, 31,000 pounds Conversion costs during August Work in process, August 31, 1,600 pounds, 30% 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. Morning Brew Coffee Company Cost of Production Report-Roasting Department For the Month Ended August 31 Unit Information

Answer 1

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Morning Brew
		Equivalent Units		Note	Answer
Units	Physical Units	Materials	Conversion
Units charged to production:
Beginning Inventory in process	1,000.00
Plus: Started production	31,000.00
Total physical units accounted for	32,000.00
Units to be assigned costs:
Beginning Inventory in process	1,000.00	-	600.00		Material is issued at the beginning. So 100% is already completed for materials. So in this month 0% is completed. So Equivalent units are calculated as 1000 * 0%. Similarly 40% is already completed for conversion. So in this month 60% is completed. So Equivalent units are calculated as 1000 * 70%.
Started and completed in same month	29,400.00	29,400.00	29,400.00
Transferred to next department	30,400.00	29,400.00	30,000.00
Ending, Inventory in process	1,600.00	1,600.00	480.00		This is closing units multiplied by % of completion
Total units to be assigned costs:	32,000.00	31,000.00	30,480.00			This is answer to 1.
Cost Information				Total
Cost incurred during the month		144,150.00	60,960.00	205,110.00
Costs per equivalent unit		4.65	2.00	6.65		This is answer to 2.
Costs assigned to production
Beginning Inventory in process		4,700.00	760.00	5,460.00
Costs incurred in the month				205,110.00
Total costs accounted for				210,570.00
Costs allocated to completed and partially completed units
Beginning Inventory in process		4,700.00	760.00	5,460.00
To complete Beginning Inventory in process		-	1,200.00	1,200.00
Started and completed in same month		136,710.00	58,800.00	195,510.00
Cost of finished goods		141,410.00	60,760.00	202,170.00		This is answer to 3.
Ending, Inventory in process		7,440.00	960.00	8,400.00		This is answer to 4.
Total costs assigned				210,570.00
Started and completed in the same month
Goods Finished in the month	30,400.00
Less: Beginning work in process	1,000.00
Started and completed in the same month	29,400.00