Chp 20 HW Arabica Highland Coffee Company roasts and packs coffee beans. The pro

Question

Chp 20 HW Arabica Highland Coffee Company roasts and packs coffee beans. The process begins by placing coffee beans into the Roasting Department. From the Roasting Department, coffee beans are th transferred to the Packing Department. The following is a partial work in process account of the Roasting Department at July 31: ACCOUNT NO. Balance Date Item 31 Direct materials, 196,000 units 31 Direct labor 31 Factory overhead 31 Goods transferred, 197,000 units 31 Bal., 2 units, 2/5 completed 341,530 404,730 420,562 Required: round to two decimal places. Cost of

Explanation / Answer

FIFO method Beggining units 4900 Transferred out 1,97,000 Started into production 196000 Ending units 3,900 200900 200900 Equivalent units Material Conversion Beginning units 4900 4900 Completion in current period 0% 80% A 0 3920 Units started and completed 192100 192100 Completion 100% 100% B 192100 192100 Ending Units 3,900 3,900 Completion 100% 40% C 3900 1560 Total units A+B+C 196000 197580 Cost per equivalent units Per unit cost Cost Total units Per unit cost Material cost 333200 196000 1.70 Conversion cost 79032 197580 0.40 Total 412232 2.10 Cost of goods sold Material convertion cost Beginning inventory completed Completion 0% 80% Per unit cost 1.70 0.40 Units 4900 4900 Total cost   A 0.00 1568 1568 Units started and completed Completion 100% 100% Per unit cost 1.70 0.40 Units 192100 192100 Total cost    B 326570 76840 403410 Beginning work in progress C 8330 Total cost A+B+C 413308 Ending work in progress Completion 100% 40% Per unit cost 1.70 0.40 Units 3,900 3,900 Total cost     6630 624 7254 Total cost accounted for 420562

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