The debits to Work in Process—Roasting Department for Morning Brew Coffee Compan

Question

The debits to Work in Process—Roasting Department for Morning Brew Coffee Company for August, together with information concerning production, are as follows:

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.

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.

Work in process, August 1, 700 pounds, 60% completed $4,410* *Direct materials (700 X $5.1) $3,570 Conversion (700 X 60% X $2) 840 $4,410 Coffee beans added during August, 22,000 pounds 111,100 Conversion costs during August 45,171 Work in process, August 31, 1,100 pounds, 30% completed ? Goods finished during August, 21,600 pounds ?

Explanation / Answer

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 1 700 Received from materials storeroom 22000 Total units accounted for by the Roasting Department 22700 Units to be assigned costs: Equivalent Units Whole Units Direct Materials Conversion Inventory in process, August 1 700 0 280 Started and completed in August 20900 20900 20900 Transferred to Packing Department in August 21600 20900 21180 Inventory in process, August 31 1100 1100 330 Total units to be assigned costs 22700 22000 21510 Cost Information Costs per equivalent unit: Direct Materials Conversion Total costs for August in Roasting Department 111100 45171 Total equivalent units 22000 21510 Cost per equivalent unit 5.05 2.1 Costs charged to production: Direct Materials Conversion Total Inventory in process, August 1 4410 Costs incurred in August 156271 Total costs accounted for by the Roasting Department 160681 Cost allocated to completed and partially completed units: Inventory in process, August 1 balance 4410 To complete inventory in process, August 1 0 588 588 Cost of completed August 1 work in process 4998 Started and completed in August 105545 43890 149435 Transferred to Packing Department in August 154433 Inventory in process, August 31 5555 693 6248 Total costs assigned by the Roasting Department 160681 2 Increase or Decrease Amount Change in direct materials cost per equivalent unit Decrease 0.05 Change in conversion cost per equivalent unit Increase 0.1

Related Questions

Navigate

• Browse (All)
• Browse T
• Subjects

---

---

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