equivalent unit for conversion costseasedfrom August to October. These changes s

Question

equivalent unit for conversion costseasedfrom August to October. These changes shoul d Ur direct materials inased from August to October The cost per hes to assig be investigated for their underlying causes, and any necessary corrective actions should be taken and 2. PR.03-02A.ALGO (Algorithmic) Cost of Production Report to Hana 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 then transferred to the Packing Department. The following is a partial work in process account of the Roasting Department at July 31: ACCOUNT NO. Balance Debit Credit ACCOUNT Work in Process-Roasting Department Date Item Debit Credit 14,560 628,810 746,910 776,410 July 1 Bal., 6,500 units, 2/5 completed 31 Direct materials, 292,500 units 614,250 31 Direct labor 31 Factory overhead 31 Goods transferred, 293,000 units 31 Bal., 2 units, 4/5 completed 118,100 29,500 Required: 1. Prepare a cost of production report, and identify the missing amounts for Work in Process-Roasting Department. If an amount is zero, enter "O". When computing cost per equivalent units, round to two decimal places. Hana Coffee Company Cost of Production Report-Roasting Department For the Month Ended July 31 47

Explanation / Answer

FIFO method Beggining units 6500 Transferred out 2,93,000 Started into production 292500 Ending units 6,000 299000 299000 Equivalent units Material Conversion Beginning units 6500 6500 Completion in current period 0% 60% A 0 3900 Units started and completed 286500 286500 Completion 100% 100% B 286500 286500 Ending Units 6,000 6,000 Completion 100% 80% C 6000 4800 Total units A+B+C 292500 295200 Cost per equivalent units Per unit cost Cost Total units Per unit cost Material cost 614250 292500 2.10 Conversion cost 147600 295200 0.50 Total 761850 2.60 Cost of goods sold Material convertion cost Beginning work in progress A 13000 1560 14560 Beginning inventory completed Completion 0% 60% Per unit cost 2.10 0.50 Units 6500 6500 Total cost   B 0 1950 1950 Units started and completed Completion 100% 100% Per unit cost 2.10 0.50 Units 286500 286500 Total cost    C 601650 143250 744900 Total cost A+B+C 614650 145200 761410 Ending work in progress Completion 100% 80% Per unit cost 2.10 0.50 Units 6,000 6,000 Total cost     12600 2400 15000 Total cost accounted for 776410 Cost per equivalent unit Material Conversion cost For current period 2.10 0.50 For beginning inventory 2 0.60 increase (decrease) 0.1 -0.10

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