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 DepartmentACCOUNT NO.

DateItemDebitCreditBalance

DebitCredit

July1Bal., 4,800 units, 4/5 completed 18,336

31Direct materials, 216,000 units691,200 709,536

31Direct labor136,400 845,936

31Factory overhead34,096 880,032

31Goods transferred, 216,000 units ?

31Bal., ? 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

Received from materials storeroom

Total units accounted for by the Roasting Department

Units to be assigned costs:

Equivalent Units

Whole UnitsDirect MaterialsConversion

Inventory in process, July 1

Started and completed in July

Transferred to Packing Department in July

Inventory in process, July 31

Total units to be assigned costs

Cost Information

Cost per equivalent unit:

Direct MaterialsConversion

Total costs for July in Roasting Department$$

Total equivalent units

Cost per equivalent unit$$

Costs assigned to production:

Direct MaterialsConversionTotal

Inventory in process, July 1$

Costs incurred in July

Total costs accounted for by the Roasting Department$

Costs 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 Molding 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 $14,880 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 DecreaseAmount

Change in direct materials cost per equivalent unit $

Change in conversion cost per equivalent unit $