The debits to Work in Process—Roasting Department for Morning Brew Coffee Compan
ID: 2565476 • Letter: T
Question
The debits to Work in Process—Roasting Department for Morning Brew Coffee Company for August, together with information concerning production, are as follows:
Work in process, August 1, 1,200 pounds, 20% completed
$4,536*
*Direct materials (1,200 X $3.5)
$4,200
Conversion (1,200 X 20% X $1.4)
$336
$4,536
Coffee beans added during August, 38,000 pounds
131,100
Conversion costs during August
56,940
Work in process, August 31, 2,000 pounds, 50% completed
?
Goods finished during August, 37,200 pounds
?
All direct materials are placed in process at the beginning of production.
a. Prepare a cost of production report, presenting the following computations:
Direct materials and conversion equivalent units of production for August.
Direct materials and conversion costs per equivalent unit for August.
Cost of goods finished during August.
Cost of work in process at August 31.
If an amount is zero, enter in "0". For the cost per equivalent unit, round your answer to two decimal places.
Morning Brew Coffee Company
Cost of Production Report-Roasting Department
For the Month Ended August 31
Unit Information
Units charged to production:
Inventory in process, August 1
1,200
Received from materials storeroom
38,000
Total units accounted for by the Roasting Department
39,200
Units to be assigned costs:
Equivalent Units
Whole Units
Direct Materials (1)
Conversion (1)
Inventory in process, August 1
1,200
0
Started and completed in August
36,000
36,000
Transferred to finished goods in August
37,200
36,000
Inventory in process, August 31
2,000
2,000
Total units to be assigned costs
39,200
38,000
Cost Information
Costs per equivalent unit:
Direct Materials
Conversion
Total costs for August in Roasting Department
$131,100
$56,940
Total equivalent units
38,000
Cost per equivalent unit (2)
$3.45
$
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
$
Cost 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
$
Feedback
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 the nearest cent.
Increase or Decrease
Amount
Change in direct materials cost per equivalent unit
Decrease
$
Change in conversion cost per equivalent unit
Increase
$
Work in process, August 1, 1,200 pounds, 20% completed
$4,536*
*Direct materials (1,200 X $3.5)
$4,200
Conversion (1,200 X 20% X $1.4)
$336
$4,536
Coffee beans added during August, 38,000 pounds
131,100
Conversion costs during August
56,940
Work in process, August 31, 2,000 pounds, 50% completed
?
Goods finished during August, 37,200 pounds
?
Explanation / Answer
Cost of production report Units Information Units charged to production: Inventory in process, Aug 1 1200 units Received from material Storeroom 38000 units Total units accounted for 39200 units Units to be assigned cost Equivalent units Whole units Direct Material Conversion Inventory in process Aug 1 1200 0 960 Started and completed 36000 36000 36000 Transferred to Finished Goods 37200 36000 36960 Inventory in process Aug 31 2000 2000 1000 Total units to assigned cost 39200 38000 37960 Cost Information: Cost per Equivalent unit: Direct material Conversion Total cost for August In roasting deptt 131,100 56,940 Total Equivalent units 38000 37960 Cost per equivalent units 3.45 1.5 Cost assigned tp production: Direct Material Conversion Total Inventory in process Aug 1 4536 Cost incurred in Aug 131100 56940 188040 Total Cost accounted for by roasting department 131100 56940 192576 Cost Allocated to Completed and Partially completed units Inventory in process Aug 1 4536 To complete inventory in process 0 1440 1440 Cost of completed Aug 1 work in process 5976 Started and completed in Aug 124200 54000 178200 Transferred to Finished Goods in August 184176 Inventory in Process in Aug 31 6900 1500 8400 Total cost assigned to roasting deptt 192576 Req B. Increase /Decrease Amount Change in Direct material per equivalent unit Decrease $ 0.05 per unit Change in conversion cost per equivalent units Increase $ 0.10 per unit
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