Cost of Production Report

The debits to Work in ProcessRoasting Department for Morning Brew Coffee Company for August, together with information concerning production, are as follows:

Work in process, August 1, 1,200 pounds, 30% completed $3,636*

*Direct materials (1,200 X $2.70) $3,240

Conversion (1,200 X 30% X $1.10) 396

$3,636

Coffee beans added during August, 38,000 pounds 100,700

Conversion costs during August 45,648

Work in process, August 31, 2,000 pounds, 60% completed ?

Goods finished during August, 37,200 pounds ?

All direct materials are placed in process at the beginning of production.

a.Prepar a cost of production report, presenting the following computations:

1. Direct materials and conversionequivalent units of productionfor August
2. Direct materials and conversioncosts per equivalent unitfor August
3. Cost of goods finished during August
4. Cost of work in process at August 31

If an amount is zero, enter in "0". For the cost per equivalent unit, round your answer to two decimal places.

Morning Brew Coffee Company

Cost of Production Report-Roasting Department

For the Month Ended August 31

Unit Information

Units charged to production:

Inventory in process, August 1 -------?

Received from materials storeroom -------?

Total units accounted for by the Roasting Department -------?

Units to be assigned costs:

Equivalent Units

Whole Direct Material Conversion

Units (1) (1)

Inventory in process, August 1

Started and completed in August

Transferred to finished goods in August

Inventory in process, August 31

Total units to be assigned costs

Cost Information

Cost per equivalent unit:

Direct Materials Conversion

Total costs for August in Roasting Department

Total equivalent units

Cost per equivalent unit (2)

Costs assigned to production:

Direct Materials Conversion Total

Inventory in process, August 1

Costs incurred in August

Total costs accounted for by the Roasting Department

Costs allocated to completed and partially completed units:

Inventory in process, August 1 balance

To complete inventory in process, August 1

Cost of completed August 1 work in process

Started and completed in August

Transferred to finished goods in August (3)

Inventory in process, August 31 (4)

Total costs assigned by the Roasting Department

b.Compute and evaluate the change in cost per equivalent unit for direct materials and conversion from the previous month (July). If required, round your answers to the nearest cent.

Increase or Decrease Amount

Change in direct materials cost per equivalent unit

Change in conversion cost per equivalent unit