20-4

Arabica Highland 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:

ACCOUNT Work in ProcessRoasting Department							ACCOUNT NO.
Date		Item	Debit		Credit		Balance
							Debit		Credit
July	1	Bal., 5,900 units, 3/5 completed					10,030
	31	Direct materials, 236,000 units	354,000				364,030
	31	Direct labor	75,600				439,630
	31	Factory overhead	18,960				458,590
	31	Goods transferred, 237,000 units			?
	31	Bal., ? units, 3/5 completed					?

Required:

Question Content Area

1. Prepare a cost of production report, and identify the missing amounts for Work in ProcessRoasting Department. If an amount is zero, enter "0". When computing cost per equivalent units, round to two decimal places.

Arabica Highland Coffee Company
Cost of Production Report-Roasting Department
For the Month Ended July 31
Unit Information
Units charged to production:
Inventory in process, July 1			fill in the blank 315d2a002ff6fad_1
Received from materials storeroom			fill in the blank 315d2a002ff6fad_2
Total units accounted for by the Roasting Department			fill in the blank 315d2a002ff6fad_3
Units to be assigned costs:
		Equivalent Units
	Whole Units	Direct Materials	Conversion
Inventory in process, July 1	fill in the blank 315d2a002ff6fad_4	fill in the blank 315d2a002ff6fad_5	fill in the blank 315d2a002ff6fad_6
Started and completed in July	fill in the blank 315d2a002ff6fad_7	fill in the blank 315d2a002ff6fad_8	fill in the blank 315d2a002ff6fad_9
Transferred to Packing Department in July	fill in the blank 315d2a002ff6fad_10	fill in the blank 315d2a002ff6fad_11	fill in the blank 315d2a002ff6fad_12
Inventory in process, July 31	fill in the blank 315d2a002ff6fad_13	fill in the blank 315d2a002ff6fad_14	fill in the blank 315d2a002ff6fad_15
Total units to be assigned costs	fill in the blank 315d2a002ff6fad_16	fill in the blank 315d2a002ff6fad_17	fill in the blank 315d2a002ff6fad_18
Cost Information
Costs per equivalent unit:
		Direct Materials	Conversion
Total costs for July in Roasting Department		$fill in the blank 315d2a002ff6fad_19	$fill in the blank 315d2a002ff6fad_20
Total equivalent units		fill in the blank 315d2a002ff6fad_21	fill in the blank 315d2a002ff6fad_22
Cost per equivalent unit		$fill in the blank 315d2a002ff6fad_23	$fill in the blank 315d2a002ff6fad_24
Costs charged to production:
	Direct Materials	Conversion	Total
Inventory in process, July 1			$fill in the blank 315d2a002ff6fad_25
Costs incurred in July			fill in the blank 315d2a002ff6fad_26
Total costs accounted for by the Roasting Department			$fill in the blank 315d2a002ff6fad_27
Cost allocated to completed and partially completed units:
Inventory in process, July 1 balance			$fill in the blank 315d2a002ff6fad_28
To complete inventory in process, July 1	$fill in the blank 315d2a002ff6fad_29	$fill in the blank 315d2a002ff6fad_30	fill in the blank 315d2a002ff6fad_31
Cost of completed July 1 work in process			$fill in the blank 315d2a002ff6fad_32
Started and completed in July	fill in the blank 315d2a002ff6fad_33	fill in the blank 315d2a002ff6fad_34	fill in the blank 315d2a002ff6fad_35
Transferred to Packing Department in July			$fill in the blank 315d2a002ff6fad_36
Inventory in process, July 31	fill in the blank 315d2a002ff6fad_37	fill in the blank 315d2a002ff6fad_38	fill in the blank 315d2a002ff6fad_39
Total costs assigned by the Roasting Department			$fill in the blank 315d2a002ff6fad_40

Question Content Area

2. Assuming that the July 1 work in process inventory includes $8,260 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 the nearest cent.

	Increase or Decrease	Amount
Change in direct materials cost per equivalent unit	DecreaseIncrease	$fill in the blank 070a190beffff9b_2
Change in conversion cost per equivalent unit	DecreaseIncrease	$fill in the blank 070a190beffff9b_4