Accounting 2 PR 20-2A

Fresh Mountain 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 March 31, 2016: Balance

Date Item DEB. CRED. DEB, CRED.

Mar.1

31 Bal., 1,500 units, 30% completed 6150

31 Direct materials, 22,300 units 86,970 93120

31 Direct labor 11900105,020

31Factory overhead 5,772110,792

31 Goods transferred, 21,700 units ?

31 Bal., ? units, 40% completed Debit ?

1. Prepare a cost of production report, and identify the missing amounts for Work in ProcessRoasting Department.

2. Assuming that the March 1 work in process inventory includes $5,700 of direct materials, determine the increase or decrease in the cost per equivalent unit for direct materials and conversion between February and March.