Cost of Production Report 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 Process-Roasting Department ACCOUNT NO. Balance Date Item Debit Credit Debit Credit July 1 Bal., 7,700 units, 1/5 completed 15,554 31 Direct materials, 308,000 units 616,000 631,554 31 Direct labor 123,500 755,054 31 Factory overhead 30,900 785,954 31 Goods transferred, 309,000 units 31 Bal., ? units, 1/5 completed Required: 1. Prepare a cost of production report, and identify the missing amounts for Work in Process-Roasting Department. If an amount is zero, enter "O". 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 7,700 Received from materials storeroom 308,000 Total units accounted for by the Roasting Department 315,700 Units to be assigned costs: Equivalent Units Direct Conversion Materials Whole Units Inventory in process, July 1 7,700 Started and completed in July 301,300 301,300 301,300 Transferred to Packing Department in July 309,000 301,300 Inventory in process, July 31 6,700 6,700 Total units to be assigned costs 315,700 308,000 Cost Information Costs per equivalent unit: Conversion Direct Materials $ 616,000 Total costs for July in Roasting Department Total equivalent units 308,000 Cost per equivalent unit 2 Costs charged to production: Cost Information Costs per equivalent unit: Conversion Direct Materials $ 616,000 Total costs for July in Roasting Department Total equivalent units 308,000 Cost per equivalent unit Costs charged to production: Direct Materials Conversion Total Inventory in process, July 1 $ 15,554 Costs incurred in July Total costs accounted for by the Roasting Department Cost allocated to completed and partially completed units: Inventory in process, July 1 balance To complete inventory in process, July 1 Cost of completed July 1 work in process Started and completed in July Transferred to Packing Department in July Inventory in process, July 31 Total costs assigned by the Roasting Department 2. Assuming that the July 1 work in process inventory includes $14,630 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 Increase " Change in conversion cost per equivalent unit Decrease
