Question
Cost of Production Report Fresh Mountain Coffee Company roasts and packs coffee beans. The process begins by placing coffee beans into the Roasting Department. From
Cost of Production Report
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:
ACCOUNT Work in ProcessRoasting Department | ACCOUNT NO. | ||||||||
Date | Item | Debit | Credit | Balance | |||||
Debit | Credit | ||||||||
Mar. | 1 | Bal., 1,500 units, 30% completed | 6,150 | ||||||
31 | Direct materials, 22,300 units | 86,970 | 93,120 | ||||||
31 | Direct labor | 11,900 | 105,020 | ||||||
31 | Factory overhead | 5,772 | 110,792 | ||||||
31 | Goods transferred, 21,700 units | ? | |||||||
31 | Bal., ? units, 40% completed | ? |
Part 1: Cost of Production Report
1. Prepare a cost of production report, and identify the missing amounts for Work in ProcessRoasting Department. If an amount is zero, enter in a zero "0". When computing cost per equivalent units, round to the nearest cent.
Fresh Mountain Coffee Company | |||
Cost of Production Report-Roasting Department | |||
For the Month Ended March 31, 2016 | |||
Unit Information | |||
Units charged to production: | |||
Inventory in process, March 1 | |||
Received from materials storeroom | |||
Total units accounted for by the Roasting Department | |||
Units to be assigned costs: | |||
Equivalent Units | |||
Whole Units | Direct Materials | Conversion | |
Inventory in process, March 1 | |||
Started and completed in March | |||
Transferred to Packing Department in March | |||
Inventory in process, March 31 | |||
Total units to be assigned costs | |||
Cost Information | |||
Costs per equivalent unit: | |||
Direct Materials | Conversion | ||
Total costs for March in Roasting Department | $ | $ | |
Total equivalent units | |||
Cost per equivalent unit | $ | $ | |
Costs charged to production: | |||
Direct Materials | Conversion | Total | |
Inventory in process, March 1 | $ | ||
Costs incurred in March | |||
Total costs accounted for by the Roasting Department | $ | ||
Cost allocated to completed and partially completed units: | |||
Inventory in process, March 1 balance | $ | ||
To complete inventory in process, March 1 | $ | $ | |
Cost of completed March 1 work in process | $ | ||
Started and completed in March | |||
Transferred to Packing Department in March | $ | ||
Inventory in process, March 31 | |||
Total costs assigned by the Roasting 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. If required, round your answers to two decimal places.
Increase or Decrease | Amount | |
Change in direct materials cost per equivalent unit $ | $ | |
Change in conversion cost per equivalent unit $ | $ |
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