Cost of Production Report The debits to Work in Process-Roasting Department for Morning Brew Coffee Company for August 2014, together with information concerning production, are as follows: Work in process, August 1, 700 pounds, 20% completed $ 3,479* Direct materials (700 x $4.70) $3,290 Conversion (700 x 20% x $1.35) 189 $3,479 Coffee beans added during August, 14,300 pounds 65,780 Conversion costs during August 21,942 Work in process, August 31, 400 pounds, 42% completed Goods finished during August, 14,600 pounds All direct materials are placed in process at the beginning of production. a. Prepare a cost of production report, presenting the following computations: 1. Direct materials and conversion equivalent units of production for August. 2. Direct materials and conversion costs per equivalent. guivalent unit for August. 3. Cost of goods finished during August. 4. Cost of work in process at August 31, 2014. If an amount is zero, enter in "0". For the cost per equivalent unit, round your answer to the nearest cent. Morning Brew Coffee Company Cost of Production Report-Roasting Department For the Month Ended August 31, 2014 Unit Information Units charged to production: Inventory in process, August 1 700 Received from materials storeroom 14300 Total units accounted for by the Roasting Department 15000 Units to be assigned costs: Equivalent Units Whole Units Direct Materials (1) Conversion (1) Inventory in process, August 1 700 560 Started and completed in August 13900 13900 13900 Transferred to finished goods in August 14600 13900 14460 Inventory in process, August 31 400 400 168 Total units to be assigned costs 15000 14300 14628 Cost Information Costs per equivalent unit: Direct Materials Conversion Total costs for August in Roasting Department $ 65780 $ 21942 Total equivalent units 14300 14628 Cost per equivalent unit (2) $ 4.60 $ 1.50 Costs assigned to production: Direct Materials Conversion Total Inventory in process, August 1 $ 3479 Costs incurred in August 87722 Total costs accounted for by the Roasting Department $91201 Costs allocated to completed and partially completed units: Inventory in process, August 1 balance $ 3479 To complete inventory in process, August 1 $ 0 $ 840 840 Cost of completed August 1 work in process $ 4319 Started and completed in August 63940 20850 84790Whole Units Direct Materials (1) Conversion (1) Inventory in process, August 1 700 560 Started and completed in August 13900 13900 13900 Transferred to finished goods in August 14600 13900 14460 Inventory in process, August 31 400 400 168 Total units to be assigned costs 1500 14300 14628 Cost Information Costs per equivalent unit: Direct Materials Conversion Total costs for August in Roasting Department $ 65780 $ 21942 Total equivalent units 14300 14628 Cost per equivalent unit (2) $ 4.60 $ 1.50 Costs assigned to production: Direct Materials Conversion Total Inventory in process, August 1 $ 3479 Costs incurred in A 87722 Total costs accounted for by the Roasting Department 91201 Costs allocated to completed and partially completed units: Inventory in process, August 1 balance $ 3479 To complete inventory in process, August 1 $ 0 $ 840 840 Cost of completed August 1 work in process $ 4319 Started and completed in August 63940 20850 84790 Transferred to finished goods in August (3) $ 89109 Inventory in process, August 31 (4) 1840 252 2092 Total costs assigned by the Roasting Department $ 91201 7/ 11 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 two decimal places. Increase or Decrease Amount Change in direct materials cost per equivalent unit Decrease $ -10 Change in conversion cost per equivalent unit Increase $ Correct answer: Abica Coffee Company Cost of Production Report-Roasting Department For the Month Ended May 31, 2014 Unit Information Units charged to production: Inventory in process, May 1 1200 18900