Cost of Production Report The debits to Work in Process-Roasting Department for Morning Brew Coffee Company for August, together with information concerning production, are as follows: Work in process, August 1, 1,000 pounds, 60% completed I $5,680* I *Direct materials (1,000 X $4.60) $4,600 || | Conversion (1,000 X 60% X $1.80) 1,08011 $5,680 11 1 Coffee beans added during August, 31,000 pounds 141,050 Conversion costs during August 58,444 ? Work in process, August 31, 1,600 pounds, 60% completed Goods finished during August, 30,400 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 unit for August 3. Cost of goods finished during August 4. Cost of work in process at August 31 If an amount is zero, enter in "o". 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 1,000 Received from materials storeroom 31,000 Total units accounted for by the Roasting Department 32,000 Units to be assigned costs: Equivalent Units Units to be assigned costs: Equivalent Units Direct Materials Conversion (1) (1) Whole Units 1,000 0 400 Inventory in process, August 1 Started and completed in August Transferred to finished goods in August 29,400 29,400 29,400 30,400 29,400 29,800 Inventory in process, August 31 1,600 1,600 960 Total units to be assigned costs 32,000 31,000 30,760 Cost Information Cost per equivalent unit: Direct Materials Conversion 141,050 58,444 Total costs for August in Roasting Department Total equivalent units 31,000 30,760 4.55 1.9 Cost per equivalent unit (2) Costs assigned to production: Direct Materials Conversion Total 5,680 Inventory in process, August 1 Costs incurred in August 1,080 x $ 25,844 x $ 5,680 600 X 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) III IN Total costs assigned by the Roasting Department Feedback 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 Decrease Change in conversion cost per equivalent unit Increase
