Assignment: 20-6 Homework - Exercise 20-16 CENGAGE QUESTION #2 Cost of Productio
ID: 2418194 • Letter: A
Question
Assignment: 20-6 Homework - Exercise 20-16
CENGAGE QUESTION #2
Cost of Production Report
The debits to Work in Process—Roasting Department for Morning Brew Coffee Company for August 2014, together with information concerning production, are as follows:
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, 2014.
If an amount is zero, enter in "0". For the cost per equivalent unit, round your answer to the nearest cent.
Morning Brew Coffee Company
Cost of Production Report-Roasting Department
For the Month Ended August 31, 2014
Inventory in process, August 1
Received from materials storeroom
Total units accounted for by the Roasting Department
Equivalent Units
Whole Units
Direct Materials (1)
Conversion (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
Direct Materials
Conversion
Total costs for August in Roasting Department
$
$
Total equivalent units
Cost per equivalent unit (2)
$
$
Direct Materials
Conversion
Total
Inventory in process, August 1
$
Costs incurred in August
Total costs accounted for by the Roasting Department
$
Costs allocated to completed and partially completed units:
Inventory in process, August 1 balance
$
To complete inventory in process, August 1
$
$
Cost of completed August 1 work in process
$
Started and completed in August
Transferred to finished goods in August (3)
$
Inventory in process, August 31 (4)
Total costs assigned by the Roasting Department
$
B. Compute and evaluate the change in cost per equivalent unit for direct materials and conversion from the previous month (July). If required, round your answers to two decimal places.
Morning Brew Coffee Company
Cost of Production Report-Roasting Department
For the Month Ended August 31, 2014
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:
Equivalent Units
Whole Units
Direct Materials (1)
Conversion (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:
Direct Materials
Conversion
Total costs for August in Roasting Department
$
$
Total equivalent units
Cost per equivalent unit (2)
$
$
Costs assigned to production:Direct Materials
Conversion
Total
Inventory in process, August 1
$
Costs incurred in August
Total costs accounted for by the Roasting Department
$
Costs allocated to completed and partially completed units:
Inventory in process, August 1 balance
$
To complete inventory in process, August 1
$
$
Cost of completed August 1 work in process
$
Started and completed in August
Transferred to finished goods in August (3)
$
Inventory in process, August 31 (4)
Total costs assigned by the Roasting Department
$
Explanation / Answer
1.
Calculation of equivalent units:
2.
calculation of equivivalent cost per unit.
3.
Cost of finished goods is calculated as under:
4.
Caculation of cost of WIP at the end of August is as under:
The chart filled with the figures are as under:
B.
The increase and decrease in cost per unit of direct material and conversion cost
Direct material=$4.70 at the beginning and $4.50 at the end
Increase/decrease in direct material cost per unit=($4.70-$4.50)= decrease of $0.20
Conversion cost:
$1.35 at the beginning and $1.50 at the end
Increase/decrease in conversion cost=$1.50-$1.35=$0.15
Equivalent units of productiion of direct material and conversion cost is computed as under: Direct material conversion cost Opening WIP(700 units: 80% completed during the year) 560 560 Started and completed units 13900 13900 Total units transf. to Finished goods 14460 14460 Ending inventory(400 units: 42% completed) 168 168 Total equivalent units 14628 14628 Total units started and completed calculation: Opening WIP 700 Introduced during the year 14,300 Transf. to Finished goods (14,600) Closing WIP 400 Total completed and transf. unts 14,600 Less: Beginning wip (700) During the years units started and completed 13,900Related Questions
drjack9650@gmail.com
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.