Cost of production report OBJ. 2, 4 The debits to Work in Process—Roasting Department for Morning Brew Coffee Company for August 2016, together with information concerning production, are as follows:

Work in process, August 1, 700 pounds, 20% completed $ 3,479*

*Direct materials (700 × $4.70) $3,290 Conversion (700 × 20% × $1.35) 189

$3,479 Coffee beans added during August, 14,300 pounds 65,780 Conversion costs during August 21,942 Work in process, August 31, 400 pounds, 42% completed ?

Goods finished during August, 14,600 pounds ?

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 conversion equivalent units of production for August 2. Direct materials and conversion costs per equivalent unit for August 3. Cost of goods finished during August 4. Cost of work in process at August 31, 2016

b. Compute and evaluate the change in cost per equivalent unit for direct materials and conversion from the previous month (July).