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., 4,000 units, 4/5 completed			15,280
	31	Direct materials, 180,000 units	576,000			591,280
	31	Direct labor	114,200			705,480
	31	Factory overhead	28,520			734,000
	31	Goods transferred, 180,000 units		?
	31	Bal., ? units, 2/5 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 71a36c044fd3077_1
Received from materials storeroom	fill in the blank 71a36c044fd3077_2
Total units accounted for by the Roasting Department	fill in the blank 71a36c044fd3077_3
Units to be assigned costs:
		Equivalent Units
	Whole Units	Direct Materials	Conversion
Inventory in process, July 1	fill in the blank 71a36c044fd3077_4	fill in the blank 71a36c044fd3077_5	fill in the blank 71a36c044fd3077_6
Started and completed in July	fill in the blank 71a36c044fd3077_7	fill in the blank 71a36c044fd3077_8	fill in the blank 71a36c044fd3077_9
Transferred to Packing Department in July	fill in the blank 71a36c044fd3077_10	fill in the blank 71a36c044fd3077_11	fill in the blank 71a36c044fd3077_12
Inventory in process, July 31	fill in the blank 71a36c044fd3077_13	fill in the blank 71a36c044fd3077_14	fill in the blank 71a36c044fd3077_15
Total units to be assigned costs	fill in the blank 71a36c044fd3077_16	fill in the blank 71a36c044fd3077_17	fill in the blank 71a36c044fd3077_18
Cost Information
Cost per equivalent unit:
	Direct Materials	Conversion
Total costs for July in Roasting Department	$fill in the blank 71a36c044fd3077_19	$fill in the blank 71a36c044fd3077_20
Total equivalent units	fill in the blank 71a36c044fd3077_21	fill in the blank 71a36c044fd3077_22
Cost per equivalent unit	$fill in the blank 71a36c044fd3077_23	$fill in the blank 71a36c044fd3077_24
Costs assigned to production:
	Direct Materials	Conversion	Total
Inventory in process, July 1			$fill in the blank 71a36c044fd3077_25
Costs incurred in July			fill in the blank 71a36c044fd3077_26
Total costs accounted for by the Roasting Department			$fill in the blank 71a36c044fd3077_27
Costs allocated to completed and partially completed units:
Inventory in process, July 1 balance			$fill in the blank 71a36c044fd3077_28
To complete inventory in process, July 1	$fill in the blank 71a36c044fd3077_29	$fill in the blank 71a36c044fd3077_30	fill in the blank 71a36c044fd3077_31
Cost of completed July 1 work in process			$fill in the blank 71a36c044fd3077_32
Started and completed in July	fill in the blank 71a36c044fd3077_33	fill in the blank 71a36c044fd3077_34	fill in the blank 71a36c044fd3077_35
Transferred to Molding Department in July			$fill in the blank 71a36c044fd3077_36
Inventory in process, July 31	fill in the blank 71a36c044fd3077_37	fill in the blank 71a36c044fd3077_38	fill in the blank 71a36c044fd3077_39
Total costs assigned by the Roasting Department			$fill in the blank 71a36c044fd3077_40

2. Assuming that the July 1 work in process inventory includes $12,400 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	DecreaseIncrease	$fill in the blank 8d8e0600efa9fa5_2
Change in conversion cost per equivalent unit	DecreaseIncrease	$fill in the blank 8d8e0600efa9fa5_4

The following information concerns production in the Baking Department for December. All direct materials are placed in process at the beginning of production.

ACCOUNT Work in ProcessBaking Department	ACCOUNT NO.
Date	Item	Debit	Credit	Balance
Debit	Credit
Dec.	1	Bal., 5,400 units, 3/5 completed			12,690
	31	Direct materials, 97,200 units	184,680			197,370
	31	Direct labor	49,580			246,950
	31	Factory overhead	27,892			274,842
	31	Goods finished, 98,400 units		265,518		9,324
	31	Bal., ? units, 2/5 completed			9,324

a. Based on the above data, determine each cost listed below. Round "cost per equivalent unit" answers to the nearest cent.

1. Direct materials cost per equivalent unit	$fill in the blank 1
2. Conversion cost per equivalent unit	$fill in the blank 2
3. Cost of the beginning work in process completed during December	$fill in the blank 3
4. Cost of units started and completed during December	$fill in the blank 4
5. Cost of the ending work in process	$fill in the blank 5

b. Assuming that the direct materials cost is the same for November and December, did the conversion cost per equivalent unit increase, decrease, or remain the same in December?

DecreaseIncreaseRemain the same

Equivalent Units of Production

The following information concerns production in the Baking Department for December. All direct materials are placed in process at the beginning of production.

ACCOUNT Work in ProcessBaking Department	ACCOUNT NO.
Date	Item	Debit	Credit	Balance
Debit	Credit
Dec.	1	Bal., 8,400 units, 1/3 completed			15,680
	31	Direct materials, 151,200 units	211,680			227,360
	31	Direct labor	59,730			287,090
	31	Factory overhead	33,594			320,684
	31	Goods finished, 153,300 units		308,840		11,844
	31	Bal., ? units, 4/5 completed			11,844

a. Determine the number of units in work in process inventory at December 31. fill in the blank 0ace2dfe0fd2f9b_1 units

b. Determine the equivalent units of production for direct materials and conversion costs in December. If an amount is zero, enter in "0".

	Whole Units	Equivalent Units Direct Materials	Equivalent Units Conversion
Inventory in process, December 1	fill in the blank 8eba81f53f9c070_1	fill in the blank 8eba81f53f9c070_2	fill in the blank 8eba81f53f9c070_3
Started and completed in December	fill in the blank 8eba81f53f9c070_4	fill in the blank 8eba81f53f9c070_5	fill in the blank 8eba81f53f9c070_6
Transferred to finished goods in December	fill in the blank 8eba81f53f9c070_7	fill in the blank 8eba81f53f9c070_8	fill in the blank 8eba81f53f9c070_9
Inventory in process, December 31	fill in the blank 8eba81f53f9c070_10	fill in the blank 8eba81f53f9c070_11	fill in the blank 8eba81f53f9c070_12
Total	fill in the blank 8eba81f53f9c070_13	fill in the blank 8eba81f53f9c070_14	fill in the blank 8eba81f53f9c070_15

Cost of Units Completed and in Process

The charges to Work in ProcessAssembly Department for a period, together with information concerning production, are as follows. All direct materials are placed in process at the beginning of production.

Work in ProcessAssembly Department
Bal., 2,000 units, 50% completed	6,500	To Finished Goods, 46,000 units	?
Direct materials, 47,000 units @ $1.6	75,200
Direct labor	117,200
Factory overhead	45,550
Bal., ? units, 50% completed	?

Cost per equivalent units of $1.60 for Direct Materials and $3.50 for Conversion Costs.

a. Based on the above data, determine the different costs listed below.

If required, round your interim calculations to two decimal places.

1. Cost of beginning work in process inventory completed this period	$fill in the blank 1
2. Cost of units transferred to finished goods during the period	$fill in the blank 2
3. Cost of ending work in process inventory	$fill in the blank 3
4. Cost per unit of the completed beginning work in process inventory (Rounded to the nearest cent.)	$fill in the blank 4

b. Did the production costs change from the preceding period?

NoYes

c. Assuming that the direct materials cost per unit did not change from the preceding period, did the conversion costs per equivalent unit increase, decrease, or remain the same for the current period?

DecreaseIncreaseRemain the same

Costs per Equivalent Unit and Production Costs

The following information concerns production in the Forging Department for November. All direct materials are placed into the process at the beginning of production, and conversion costs are incurred evenly throughout the process. The beginning inventory consists of $9,000 of direct materials.

ACCOUNT Work in ProcessForging Department	ACCOUNT NO.
Date	Item	Debit	Credit	Balance
Debit	Credit
Nov.	1	Bal., 900 units, 60% completed			10,566
	30	Direct materials, 12,900 units	123,840			134,406
	30	Direct labor	21,650			156,056
	30	Factory overhead	16,870				172,926
	30	Goods transferred, ? units		?		?
	30	Bal., 1,400 units, 70% completed			?

Cost per equivalent units of $9.60 for Direct Materials and $3.00 for Conversion Costs.

Based on the above data, determine each of the following amounts.

If required, round your interim calculations to two decimal places. Round final answers (a-c) to the nearest dollar.

a. Cost of beginning work in process inventory completed in November. $fill in the blank 1

b. Cost of units transferred to the next department during November. $fill in the blank 2

c. Cost of ending work in process inventory on November 30. $fill in the blank 3

d. Costs per equivalent unit of direct materials and conversion included in the November 1 beginning work in process. If required, round your answers to two decimal places.

Direct materials cost per equivalent unit	$fill in the blank 4
Conversion cost per equivalent unit	$fill in the blank 5

e. The November increase or decrease in costs per equivalent unit for direct materials and conversion from the previous month. If required, round your answers to two decimal places.

	Increase or Decrease	Amount
Change in direct materials cost per equivalent unit	DecreaseIncrease	$fill in the blank 7
Change in conversion cost per equivalent unit	DecreaseIncrease	$fill in the blank 9