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U N UI resource from Cengage Learning Cost of Production Report he gebits to Wor

ID: 2392296 • Letter: U

Question

U N UI resource from Cengage Learning Cost of Production Report he gebits to Work in Process Roasting Department for St. Arbucks Coffee Company for July 2016, together with concerning production, are as follows: Work in process, July 1, 1,000 pounds, 60% completed Direct materials (1,000 X $3.1) Conversion (1,000 X 60% X $1.2) $3.820 $3,100 Coffee beans added during July 31,000 pounds Conversion costs during July Work in process, July 31, 1,600 pounds, 60% completed Goods finished during July, 30,400 pounds 94.550 39,988 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 corversion 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. Cast 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 trvo decimal places. St. Abucks Coffee Company Cost of Production Report Roasting Department For the Month Ended July 31, 2016 Unit formation Units charged to production Inventory in proces, July 1 Received from materials toreroom Total unts accounted for by the Roasting Department Unts to be assigned costs Conversion Inventory in process, 2uly 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: ??????ion Total costs for July in Roasting Department Total equivalent units Cost per equivalent unit (2) Costs assigned to production: Direct Coversion Total Materials 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 juicio de Started and completed in July 000 Transferred to finished goods in July (3) Inventory in process, July 31 (4) Total costs assigned by the Roasting Department Compute and evaluate the change in cost per equivalent unit for direct materials and conversion from the previous month me). If required, round your answers to the nearest cent. Increase or Decrease Amount nge in direct materials cost per equivalent unit nge in conversion cost per equivalent unit

Explanation / Answer

Part 1 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              1,000 Received from materials storeroom            31,000 Total units accounted for by the Roasting Department            32,000 Units to be assigned costs: Equivalent Units Whole Units Direct Materials Conversion Inventory in process, July 1                1,000 0 400 Started and completed in July              29,400 29400 29400 Transferred to finished goods in July              30,400 29400 29800 Inventory in process, July 31                1,600                1,600                 960 Total units to be assigned costs              32,000              31,000            30,760 Cost Information Costs per equivalent unit: Direct Materials Conversion Total costs for July in Roasting Department $          94,550 $        39,988 ÷ Total equivalent units              31,000            30,760 Cost per equivalent unit $              3.05 $            1.30 Costs assigned to production: Direct Materials Conversion Total Inventory in process, July 1 $          3,820 Costs incurred in July          134,538 Total costs accounted for by the Roasting Department $      138,358 Cost allocated to completed and partially completed units: Inventory in process, July 1 balance $          3,820 To complete inventory in process, July 1(400 x 1.30) $                 -   $               520                 520 Cost of completed July 1 work in process $          4,340 Started and completed in July (29400 x 3.05; 29400 x 1.30)              89,670              38,220          127,890 Transferred to finished goods in July $      132,230 Inventory in process, July 31 (1600 x 3.05; 960 x 1.30)                4,880                1,248              6,128 Total costs assigned by the Roasting Department $      138,358 Part 2 July 1, work in process $                  3,820 Less: direct materials                      3,100 Conversion costs                          720 Conversion cost equivalent units: Units in process                      1,000 Percent complete x 60% Equivalent Units                          600 Direct Materials Conversion March costs per equivalent unit (from part 1) $3.05 $1.30 February costs per equivalent unit Total costs in work in process, July 1 3100 720 Total equivalent units 1000 600 Cost per equivalent unit $3.10 $1.20 Increase(Decrease) ($0.05) $0.10