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The increases to Work in Process—Roasting Department for Highlands Coffee Compan

ID: 2475209 • Letter: T

Question

The increases to Work in Process—Roasting Department for Highlands Coffee Company for May 2016 as well as information concerning production are as follows: Work in process, May 1, 1,150 pounds, 40% completed $ 1,700 Coffee beans added during May, 10,900 pounds 28,600 Conversion costs during May 12,504 Work in process, May 31, 800 pounds, 80% completed _ Goods finished during May, 11,250 pounds _

Prepare a cost of production report, using the average cost method. If required, round cost per equivalent unit answers to the nearest cent. Highlands Coffee Company Cost of Production Report-Roasting Department For the Month Ended May 31, 2016 Unit Information Units to account for during production: Inventory in process, May 1 Received from materials storeroom Total units accounted for by the Roasting Department Units to be assigned costs: Whole Units Equivalent Units of Production Transferred to finished goods in May Inventory in process, May 31 Total units to be assigned costs Cost Information Costs per equivalent unit: Costs Total costs for May in Roasting Department $ Total equivalent units Cost per equivalent unit $ Costs assigned to production: Inventory in process, May 1 $ Costs incurred in May Total costs accounted for by the Roasting Department $ Costs allocated to completed and partially completed units: Transferred to finished goods in May $ Inventory in process, May 31 Total costs assigned by the Roasting Department $ 3 more Check My Work uses remaining.

Explanation / Answer

the assumptions as the details provided in the problem

The increases to Work in Process—Roasting Department for Highlands Coffee Company for May 2016 as well as information concerning production are as follows:

Work in process, May 1, 1,150 pounds, 40% completed                                                                                                                          $ 1,700

Coffee beans added during May, 10,900 pounds                                                                                                                                       28,600

Conversion costs during May                                                                                                                                                                     12,504

Work in process, May 31, 800 pounds, 80% completed                                                       —

Goods finished during May, 11,250 pounds                                                                         —

Prepare a cost of production report, using the average cost method.     

the cost of production report is given below

Cost of production report - roasting department for the month ending May-2016 Units whole units equivalent unit of production units to account for during production inventory of work in process 1st may 1150 added during may 10900 total units accounted for in May by roasting department 12050 units to be assigned cost total finished goods manufactured 11250 11250 inventory in process 31, 80% completed 800 640 Total units to be assigned cost 12050 11890 Costs Cost per equivalent unit total production cost of may 42804 total equivalent units 11890 Cost per equivalent unit 3.6 Cost assigned to production Inventory in process 1st may 1700 purchases of coffee bean 28600 conversion cost 12504 Total cost accounted in the month of May 42804 Cost allocated to completed and partially completed units Total production of FG ( 11250 x 3.6) 40500 inventory in process 31st may (640 x 3.6) 2304 Total cost assigned by roating department 42804