Cost of Production Report

The debits to Work in ProcessRoasting Department for Daybreak Brew Coffee Company for August, together with information concerning

production, are as follows:

Work in process, August 1, 1,000 pounds, 10% completed $3,850*

*Direct materials (1,000 X $3.7) $3,700

Conversion (1,000 X 10% X $1.5) $150

$3,850

Coffee beans added during August, 31,000 pounds $113,150

Conversion costs during August 50,272

Work in process, August 31, 1,600 pounds, 70% 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 box does not require an entry, leave it blank. For the cost per equivalent unit, round your answer to two decimal places.

Daybreak 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

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 the nearest cent.

Increase or Decrease Amount

Change in direct materials cost per equivalent unit $

Change in conversion cost per equivalent unit