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., 7,700 units, 3/5 completed					11,858
	31	Direct materials, 346,500 units	485,100				496,958
	31	Direct labor	82,500				579,458
	31	Factory overhead	20,646				600,104
	31	Goods transferred, 347,000 units			?
	31	Bal., ? units, 1/5 completed					?

Required:

Question Content Area

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.

2. Assuming that the July 1 work in process inventory includes $10,010 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	Decrease or Increase	$fill in the blank
Change in conversion cost per equivalent unit	Decrease or Increase	$fill in the blank