Question

PR 17-2A Cost of production report t pe Hana Coffee Company roasts and packs co nversio0.76 beans into the Roasting Departmen fee beans. The process begins by placing coffee From the Roasting Department, coffee beans are then g Department. The following is a partial work in process account of Obj. 2, 4 alent unit, equiva transferred to the Packin the Roasting Department at July 31: ACCOUNT Work in Process-Roasting Department ACCOUNT NO. EXCEL TEMPLATE Balance Date Item Debit Credit Debit Credit July | 1 | Bal., 30,000 units, 10% completed 31 Direct materials, 155,000 units 31 Direct labor 31 Factory overhead 31 Goods transferred, 149,000 units 31 | Bal, 2units, 45% completed 121,800 741,800 831,800 865,072 620,000 90,000 33,272 Instructions ork in Process- 1. Prepare a cost of production report, and identify the missing amounts for W Roasting Department determine the increase or decrease in the cost per equivalent unit for direct materials and conversion between June and July. 2. Assuming that the July 1 work in process inventory includes $119,400 of direct materials, Obj. 2, 3, 4 PR 17-3A Equivalent units and related costs; cost of production report;

Answer 1

Hana Coffee Company
Cost of Production Report-Roasting Department
For the Month Ended July 31
Unit Information
Units charged to production:
Inventory in process, July 1			30000
Received from materials storeroom			155000
Total units accounted for by the Roasting Department			185000
Units to be assigned costs:
		Equivalent Units
	Whole Units	Direct Materials	Conversion
Inventory in process, July 1	30000	0	27000
Started and completed in July	119000	119000	119000
Transferred to Packing Department in July	149000	119000	146000
Inventory in process, July 31	36000	36000	16200
Total units to be assigned costs	185000	155000	162200
Cost Information
Costs per equivalent unit:
		Direct Materials	Conversion
Total costs for July in Roasting Department		620000	123272
Total equivalent units		155000	162200
Cost per equivalent unit		4.00	0.76
Costs charged to production:
	Direct Materials	Conversion	Total
Inventory in process, July 1			121800
Costs incurred in July			743272
Total costs accounted for by the Roasting Department			865072
Cost allocated to completed and partially completed units:
Inventory in process, July 1 balance			121800
To complete inventory in process, July 1	0	20520	20520
Cost of completed July 1 work in process			142320
Started and completed in July	476000	90440	566440
Transferred to Packing Department in July			708760
Inventory in process, July 31	144000	12312	156312
Total costs assigned by the Roasting Department			865072
2
	Increase or Decrease	Amount
Change in direct materials cost per equivalent unit	Increase	0.02		=4-(119400/30000)
Change in conversion cost per equivalent unit	Decrease	0.04		=0.76-((121800-30000*3.98)/3000)