Hana Coffee Company roasts and packs coffee beans. The process begins by placing
ID: 2535244 • Letter: H
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 two decimal places.
2. Assuming that the July 1 work in process inventory includes $9,760 of direct materials, determine the increase or decrease in the cost per equivalent unit for direct materials and conversion between February and July. If required, round your answers to the nearest cent.
ACCOUNT Work in Process—Roasting Department ACCOUNT NO. Date Item Debit Credit Balance Debit Credit July 1 Bal., 6,100 units, 4/5 completed 12,200 31 Direct materials, 274,500 units 466,650 478,850 31 Direct labor 87,200 566,050 31 Factory overhead 21,744 587,794 31 Goods transferred, 275,000 units ? 31 Bal., ? units, 2/5 completed ?Explanation / Answer
Answer 1. Hana Coffee Company Cost of Production Report - Roating Department For the Month ended July 31 Particulars Equivalent Units Physical Units Materials Conversion Costs Units Charged to Priduction Inventory in Process, Jul 1 6,100 Received From Materials Storeroom 274,500 Total units accounted for by the Roasting Department 280,600 Units to be assigned costs: Goods Units Completed & transferred out: Inventory in Process, Jul 1 6,100 - 1,220 (0% materials, 20% conversion costs) Started & Completed (275,000 - 6,100) 268,900 268,900 268,900 Transferred to Packing Department in July 275,000 268,900 270,120 Work in process, Jul 31 (280,600 - $275,000) 5,600 5,600 2,240 (100% materials, 40% conversion costs) Equivalent units accounted for 280,600 274,500 272,360 Cost Information Materials Conversion Costs Total Total Cost for July in Roasting Department WIP, Beginning 12,220 Cost added in current period 466,650 108,944 575,594 Total cost to be account for 466,650 108,944 587,814 Cost added in current period 466,650 108,944 575,594 Equivalent Units of work done in current Period 274,500 272,360 Cost per Equivalent Unit 1.70 0.40 2.10 Assignment of Costs: Goods Units and Completed out (275,000 Units) WIP, Beginning -6,100 Units - - 12,220 Cost added to Beg. WIP in Current period - 488 488 (1,220 Units X $0.40) Total of Beginning Inventory - 488 12,708 Started and completed - 268,900 Units 457,130 107,560 564,690 (268,900 units X $1.70) (268,900 units X $0.40) Total Cost of good units completed & transferred out 457,130 108,048 577,398 WIP, Ending - 5,600 Units 9,520 896 10,416 (5,600 units X $1.70) (2,240 units X $0.40) Total Cost accounted For 466,650 108,944 587,814 Answer 2. Calculation of Cost per Unit - Oct 1 Materials Conversion Costs Total WIP - July 1, Cost 9,760 2,440 12,200 Equivalent No. of Unit - WIP - Jul 1 6,100 4,880 Cost pet Equivalent Unit 1.60 0.50 2.10 Materials Conversion Costs Total Cost per Equivalent Unit - Beginning Inventory 1.60 0.50 2.10 Cost per Equivalent Unit -October 1.70 0.40 2.10 Increase (Decrease) in Cost per Unit 0.10 (0.10) -
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.