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, 1,000 pounds, 50% completed$3,250**Direct materials (1,000 X $2.7)$2,700Conversion (1,000 X 50% X $1.1)550$3,250Coffee beans added during August, 31,000 pounds82,150Conversion costs during August36,840Work in process, August 31, 1,600 pounds, 50% completed?Goods finished during August, 30,400 pounds?

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

a.Prepare 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 CompanyCost of Production Report-Roasting DepartmentFor the Month Ended August 31Unit InformationUnits charged to production:Inventory in process, August 1Received from materials storeroomTotal units accounted for by the Roasting DepartmentUnits to be assigned costs:Equivalent UnitsWhole UnitsDirect Materials (1)Conversion (1)Inventory in process, August 1Started and completed in AugustTransferred to finished goods in AugustInventory in process, August 31Total units to be assigned costsCost InformationCost per equivalent unit:Direct MaterialsConversionTotal costs for August in Roasting Department$$Total equivalent unitsCost per equivalent unit (2)$$Costs assigned to production:Direct MaterialsConversionTotalInventory in process, August 1$Costs incurred in AugustTotal costs accounted for by the Roasting Department$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$Started and completed in AugustTransferred to finished goods in August (3)$Inventory in process, August 31 (4)Total costs assigned by the Roasting Department$

Feedback

a. How much more (percentage amount) needed to be done to the beginning work in process units to make the units to complete to transfer to the next department? Did these units require more material cost or more conversion cost? How much, in terms of cost, had been done to these units in the prior period? In order for units to be transferred to the next department, the units have to be complete with respect to both materials and conversion. When are materials added in the process? How complete re the units in ending inventory with respect to materials? How compete are the units in ending inventory with respect to conversion? Materials and conversion cost needs to be allocated among the equivalent units. Are the number of equivalent units the same for materials and conversion?

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 DecreaseAmountChange in direct materials cost per equivalent unitDecrease

$Change in conversion cost per equivalent unitIncrease

$