ARABICA HIGHLANDS COFFEE COMPANY Cost of Production Report - Roasting Department For the Month Ended July 31 UNITS Equivalent Units Whole Units Direct Materials Conversion Units charged to production: Inventory in process, July 1 30,000 Received from materials storeroom 155,000 Total units accounted for by the Roasting Department 185,000 Units to be assigned cost: Inventory in process, July 1 10% complete) 30,000 27,000 Started and completed in July 119,000 119,000 119,000 Transferred to Pack ing Department in July 149,000 119,000 146,000 Inventory in process, July 31 ( 45% complete) 36,000 38,000 16,200 Total units to be assigned cost 185,000 155,000 82,200 COSTS Costs Direct Materials Conversion Total Costs per equivalent unit: Total costs for July in Roasting Department S 820,000 S 123.272 Total equivalent units 155,000 182,200 Cost per equivalent unit 4.00 0.76 Costs ess igned to production: Inventory in process, July 1 $ 121,800 Costs incurred in July 743,272 Total costs accounted for by the Roasting Department 885,072 Costs allocated to completed and partially completed units : Inventory in process, July 1 S 121,800 To complete inventory in process , July 1 20,520 20,520 Cost of completed July 1 work in process S 142,320 Started and completed in July 476,000 90, 440 686,440 Transferred to Pack ing Department in July 3 708,780 Inventory in process, July 31 144,000 12,312 156,312 Total costs as signed by the Roasting Department 885,072 July 1, work in process Less direct materials Conversion costs Conversion cost equivalent units: Units in process Percent complete X Equivalent units Direct Materials Conversion July costs per equivalent unit (from part 1) June costs per equivalent unit: Total costs in Work in Process, July 1 Total equivalent units Cost per equivalent unit Increase (decrease)PR 20-ZA Cost of production report OBJ. 2,4 cost per Arabica Highland Coffee Company roasts and packs coffee beans. The process begins by $0.76 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 Process-Roasting Department ACCOUNT NO. Balance Date Item Debit Credit Debit Credit July 1 Bal., 30,000 units, 10% completed 121,800 31 Direct materials, 155,000 units 620,000 741,800 31 Direct labor 90,000 831,800 31 Factory overhead 33,272 865,072 31 Goods transferred, 149,000 units 31 Bal., 2 units, 45% completed Instructions 1. Prepare a cost of production report and identify the missing amounts for Work in Process-Roasting Department. 2. Assuming that the July 1 work in process inventory includes $119,400 of direct ma terials, determine the increase or decrease in the cost per equivalent unit for direct materials and conversion between June and July
