Provide the same information for May by recording the May transactions in the fo

Question

Provide the same information for May by recording the May transactions in the four-column work in process account. Construct a cost of production report, and present the May computations (a through d) listed in part (1). Comment on the change in costs per equivalent unit for March through May for direct materials and conversion costs. Cost of production report: average cost method Sunrise Coffee Company roasts and packs coffee beans. The process begins in the Roasting Department. From the Roasting Department, the coffee beans are transferred to the Packing IX-part ment. The following is a partial work in process account of the Roasting Department at December 31, 2016: Instructions Prepare a cost of production report, using the average cost method, and identify the missing amounts for Work in Process-Roasting Department.

Explanation / Answer

Cost of Prduction report Equivalent Units Flow Of Units Physical Units Direct Material Direct Labour Overhead Units to be accounted for Beginning work in process inventory 10500 Units started this period 210400 Total u nits to be accounted for    220900 Units accounnted for: Completed and transferred out (b) 208900 208900 208900 208900 Ending work in progress inventory© 12000 3000 3000 3000 Total units to be accounted for (f)      220900 211900 211900 211900 Flow of Cost Begiining and cost added to process 572130 267800 135700 168630 Total Cost to be accounted for (e)     572130 267800 135700 168630 Cost per equivalent unit (a)    (e/f) 2.70 1.26 0.64 0.80 Cost accounted for Cost assigned to units transferred out (a*b) 564030 264009 133779 166243 Cost in ending work in progress inventory (a*c)     8100 3791 1921 2387 Total Cost accounted for    572130.00 267800.00 135700.00 168630.00 Bal 12000 units, 25% completed Cost of Goods Transferred 564030.00 564030 rounded off Cost of Ending Inventory 8100.00 8100 Note the Beginning inventory cost is added in Direct material as been shown in the question Note in the above it is assumed that direct material is also 25% completed as mentioned but total direct material is added makes it 100% complete. If in case above answer is incorrect kindly enter the amount of second solution where direct material is 100% complete Cost of Prduction report Equivalent Units Flow Of Units Physical Units Direct Material Direct Labour Overhead Units to be accounted for Beginning work in process inventory 10500 Units started this period 210400 Total u nits to be accounted for    220900 Units accounnted for: Completed and transferred out (b) 208900 208900 208900 208900 Ending work in progress inventory© 12000 12000 3000 3000 Total units to be accounted for (f)      220900 220900 211900 211900 Flow of Cost Cost in the begnning work in progress inventory 0 Begiining and cost added to process 572130 267800 135700 168630 Total Cost to be accounted for (e)     572130 267800 135700 168630 Cost per equivalent unit (a)    (e/f) 2.65 1.21 0.64 0.80 Cost accounted for Cost assigned to units transferred out (a*b) 553274 253252 133779 166243 Cost in ending work in progress inventory (a*c)     18856 14548 1921 2387 Total Cost accounted for    572130.00 267800.00 135700.00 168630.00 Bal 12000 units, 25% completed Cost of Goods Transferred 553273.65 553274 rounded off Cost of Ending Inventory 18856.35 18856

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