Cost of Production Report

Mochaccino Express 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., 4,700 units, 40% completed					8,460
	31	Direct materials, 188,000 units	319,600				328,060
	31	Direct labor	60,400				388,460
	31	Factory overhead	15,040				403,500
	31	Goods transferred, 189,000 units			?
	31	Bal., ? units, 40% 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 box does not require an entry, leave it blank. When computing cost per equivalent units, round to two decimal places.

Mochaccino Express Coffee Company

Cost of Production Report-Roasting Department

For the Month Ended July 31

Units charged to production:		Number of Units
Inventory in process, July 1		fill in the blank
Received from materials storeroom		fill in the blank
Total units accounted for by the Roasting Department		fill in the blank

Units to be assigned costs:	Equivalent Units
	Whole Units	Direct Materials	Conversion
Inventory in process, July 1	fill in the blank	fill in the blank	fill in the blank
Started and completed in July	fill in the blank	fill in the blank	fill in the blank
Transferred to Packing Department in July	fill in the blank	fill in the blank	fill in the blank
Inventory in process, July 31	fill in the blank	fill in the blank	fill in the blank
Total units to be assigned costs	fill in the blank	fill in the blank	fill in the blank

Costs per equivalent unit:	Direct Materials	Conversion
Total costs for July in Roasting Department	$fill in the blank	$fill in the blank
Total equivalent units	fill in the blank	fill in the blank
Cost per equivalent unit	$fill in the blank	$fill in the blank
Costs charged to production:
	Direct Materials	Conversion	Total
Inventory in process, July 1			$fill in the blank
Costs incurred in July			fill in the blank
Total costs accounted for by the Roasting Department			$fill in the blank
Cost allocated to completed and partially completed units:
Inventory in process, July 1 balance			$fill in the blank
To complete inventory in process, July 1	$fill in the blank	$fill in the blank	fill in the blank
Cost of completed July 1 work in process			$fill in the blank
Started and completed in July	fill in the blank	fill in the blank	fill in the blank
Transferred to Packing Department in July			$fill in the blank
Inventory in process, July 31	fill in the blank	fill in the blank	fill in the blank
Total costs assigned by the Roasting Department			$fill in the blank

Question Content Area

2. Assuming that the July 1 work in process inventory includes $7,520 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	DecreaseIncrease	$fill in the blank
Change in conversion cost per equivalent unit	DecreaseIncrease	$fill in the blank