The debits to Work in Process—Roasting Department for St. Arbucks Coffee Company
ID: 2561955 • Letter: T
Question
The debits to Work in Process—Roasting Department for St. Arbucks Coffee Company for July 2016, together with information concerning production, are as follows:
Work in process, July 1, 600 pounds, 60% completed
$3,192*
*Direct materials (600 X $4.3)
$2,580
Conversion (600 X 60% X $1.7)
$612
$3,192
Coffee beans added during July, 19,000 pounds
80,750
Conversion costs during July
33,732
Work in process, July 31, 1,000 pounds, 50% completed
?
Goods finished during July, 18,600 pounds
?
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 July.
2. Direct materials and conversion costs per equivalent unit for July.
3. Cost of goods finished during July.
4. Cost of work in process at July 31, 2016.
If an amount is zero, enter in "0". For the cost per equivalent unit, round your answer to two decimal places.
St. Arbucks Coffee Company
Cost of Production Report-Roasting Department
For the Month Ended July 31, 2016
Unit Information
Units charged to production:
Inventory in process, July 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, July 1
Started and completed in July
Transferred to finished goods in July
Inventory in process, July 31
Total units to be assigned costs
Cost Information
Costs per equivalent unit:
Direct Materials
Conversion
Total costs for July in Roasting Department
$
$
Total equivalent units
Cost per equivalent unit (2)
$
$
Costs assigned to production:
Direct Materials
Conversion
Total
Inventory in process, July 1
$
Costs incurred in July
Total costs accounted for by the Roasting Department
$
Cost allocated to completed and partially completed units:
Inventory in process, July 1 balance
$
To complete inventory in process, July 1
$
$
Cost of completed July 1 work in process
$
Started and completed in July
Transferred to finished goods in July (3)
$
Inventory in process, July 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 (June). If required, round your answers to the nearest cent.
Increase or Decrease
Amount
Change in direct materials cost per equivalent unit
$
Change in conversion cost per equivalent unit
$
Work in process, July 1, 600 pounds, 60% completed
$3,192*
*Direct materials (600 X $4.3)
$2,580
Conversion (600 X 60% X $1.7)
$612
$3,192
Coffee beans added during July, 19,000 pounds
80,750
Conversion costs during July
33,732
Work in process, July 31, 1,000 pounds, 50% completed
?
Goods finished during July, 18,600 pounds
?
Explanation / Answer
Workings:
Material Conversion Total 1. Equivalent units 19000 18740 2. Cost per equivalent unit $4.39 $1.83 3. cost of finished goods 78944 33428 112372 4. Cost of ending inventory 4386 916 5302Related Questions
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