Hana Coffee Company roasts and packs coffee beans. The process begins by placing

Question

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:

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 "0". When computing cost per equivalent units, round to the nearest cent.

Feedback

1. Calculate equivalent units for materials and conversion costs. Calculate the cost per equivalent unit for materials and conversion costs. Calculate the costs assigned to the beginning inventory, the units started and completed, and the ending inventory.

2. Assuming that the July 1 work in process inventory includes $119,400 of direct materials, determine the increase or decrease in the cost per equivalent unit for direct materials and conversion between June and July. If required, round your answers to two decimal places.

ACCOUNT Work in Process—Roasting Department ACCOUNT NO. Date Item Debit Credit Balance Debit Credit July 1 Bal., 30,000 units, 10% completed 121,800 31 Direct materials, 155,000 units 620,000 741,800 31 Direct labor 90,000 831,800 31 Factory overhead 33,272 865,072 31 Goods transferred, 149,000 units ? 31 Bal., ? units, 45% completed ?

Explanation / Answer

Solution 1:

Solution 2:

Change in direct materials cost per equivalent unit form June to July = $4 - ($119,400 / 30000) = $0.02 increase

Change in conversion cost per equivalent unit = $0.76 - ($2,400 / 3000) = $0.04 decrease

Hana Coffee Roasting Department Computation of Equivalent unit (FIFO) Particulars Physical units Material Conversion Units to be accounted for: Beginning WIP Inventory 30000 Units started this period 155000 Total unit to be accounted for 185000 Units Accounted for: Units completed and transferred out From beginning inventory
Material - 0%
Conversion - 90% 30000 0 27000 Started and completed currently 119000 119000 119000 Units in ending WIP
Material - 100%
Conversion - 45% 36000 36000 16200 Total units accounted for 185000 155000 162200

Related Questions

Navigate

• Browse (All)
• Browse H
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.