Chapter 17 Homework

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10. eBook

    Cost of Production Report

    Hana 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., 5,600 units, 3/5 completed					20,384
    	31	Direct materials, 252,000 units	806,400				826,784
    	31	Direct labor	159,800				986,584
    	31	Factory overhead	40,008				1,026,592
    	31	Goods transferred, 252,000 units			?
    	31	Bal., ? units, 1/5 completed					?

    Required:

    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.

    Hana 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 e39322002038044_1
    Received from materials storeroom			fill in the blank e39322002038044_2
    Total units accounted for by the Roasting Department			fill in the blank e39322002038044_3
    Units to be assigned costs:
    		Equivalent Units
    	Whole Units	Direct Materials	Conversion
    Inventory in process, July 1	fill in the blank e39322002038044_4	fill in the blank e39322002038044_5	fill in the blank e39322002038044_6
    Started and completed in July	fill in the blank e39322002038044_7	fill in the blank e39322002038044_8	fill in the blank e39322002038044_9
    Transferred to Packing Department in July	fill in the blank e39322002038044_10	fill in the blank e39322002038044_11	fill in the blank e39322002038044_12
    Inventory in process, July 31	fill in the blank e39322002038044_13	fill in the blank e39322002038044_14	fill in the blank e39322002038044_15
    Total units to be assigned costs	fill in the blank e39322002038044_16	fill in the blank e39322002038044_17	fill in the blank e39322002038044_18
    Cost Information
    Cost per equivalent unit:
    		Direct Materials	Conversion
    Total costs for July in Roasting Department		$fill in the blank e39322002038044_19	$fill in the blank e39322002038044_20
    Total equivalent units		fill in the blank e39322002038044_21	fill in the blank e39322002038044_22
    Cost per equivalent unit		$fill in the blank e39322002038044_23	$fill in the blank e39322002038044_24
    Costs assigned to production:
    	Direct Materials	Conversion	Total
    Inventory in process, July 1			$fill in the blank e39322002038044_25
    Costs incurred in July			fill in the blank e39322002038044_26
    Total costs accounted for by the Roasting Department			$fill in the blank e39322002038044_27
    Costs allocated to completed and partially completed units:
    Inventory in process, July 1 balance			$fill in the blank e39322002038044_28
    To complete inventory in process, July 1	$fill in the blank e39322002038044_29	$fill in the blank e39322002038044_30	fill in the blank e39322002038044_31
    Cost of completed July 1 work in process			$fill in the blank e39322002038044_32
    Started and completed in July	fill in the blank e39322002038044_33	fill in the blank e39322002038044_34	fill in the blank e39322002038044_35
    Transferred to Molding Department in July			$fill in the blank e39322002038044_36
    Inventory in process, July 31	fill in the blank e39322002038044_37	fill in the blank e39322002038044_38	fill in the blank e39322002038044_39
    Total costs assigned by the Roasting Department			$fill in the blank e39322002038044_40

    Feedback

    1. Calculate equivalent units for materials and conversion costs. Calculate the cost per equivalent unit for materials and conversion costs. Calculate the costs assigned to the beginning inventory, the units started and completed, and the ending inventory.

    2. Assuming that the July 1 work in process inventory includes $17,360 of direct materials, determine the increase or decrease in the cost per equivalent unit for direct materials and conversion between February and July. If required, round your answers to the nearest cent.

    	Increase or Decrease	Amount
    Change in direct materials cost per equivalent unit		?????
    Change in conversion cost per equivalent unit		????

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    2. Compare the costs per equivalent unit for February and July. The costs per equivalent unit for materials and conversion for February are in the July 1 work in process inventory. The materials amount is given.

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    Incorrect