Cost of Production Report

The debits to Work in ProcessRoasting Department for Morning Brew Coffee Company for August 2016, 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:

Direct materials and conversion equivalent units of production for August.

Direct materials and conversion costs per equivalent unit for August.

Cost of goods finished during August.

Cost of work in process at August 31, 2016.

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 ReportRoasting Department

For the Month Ended August 31, 2016

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 Units

Direct Materials (1)

Conversion (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

Costs 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 two decimal places.

	Increase or Decrease	Amount
Change in direct materials cost per equivalent unit		$
Change in conversion cost per equivalent unit		$