Sunrise Coffee Company roasts and packs coffee beans. The process begins in the

Question

Sunrise Coffee Company roasts and packs coffee beans. The process begins in the Roasting Department. From the Roasting Department, the coffee beans are transferred to the Packing Department. The following is a partial work in process account of the Roasting Department at December 31:

Required:

Prepare a cost of production report, using the average cost method, and identify the missing amounts for Work in Process—Roasting Department. If required, round your cost per equivalent unit answer to two decimal places.

ACCOUNT Work in Process-Roasting Department ACCOUNT NO. Date Item Debit Credit Balance Debit Credit Dec. 1 Bal., 14,200 units, 60% completed 52,540 31 Direct materials, 245,700 units 515,970 568,510 31 Direct labor 279,862 848,372 31 Factory overhead 402,728 1,251,100 31 Goods transferred, 247,800 units ? ? 31 Bal., ? units, 20% completed ?

Explanation / Answer

Sunrise Coffee Company Cost of Production Report-Roasting Department For the Month Ended December 31 Unit Information Units to account for during production: Inventory in process, December 1 14200 Received from materials storeroom 245700 Total units accounted for by the Roasting Department 259900 Units to be assigned costs: Whole Units Equivalent Units of Production Transferred to Packing Department in December 247800 247800 Inventory in process, December 31 12100 2420 Total units to be assigned costs 259900 250220 Cost Information Unit costs: Costs Total costs for December in Roasting Department 1251100 Total equivalent units 250220 Cost per equivalent unit 5 Costs charged to production: Inventory in process, December 1 52540 Costs incurred in December 1198560 Total costs accounted for by the Roasting Department 1251100 Costs allocated to completed and partially completed units: Transferred to Packing Department in December 1239000 Inventory in process, December 31 12100 Total costs assigned by the Roasting Department 1251100

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