Hana Coffee Company roasts and packs coffee beans. The process begins by placing the coffee beans in
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Question:
Hana Coffee Company roasts and packs coffee beans. The process begins by placing the coffee beans in the Roasting Department. From the Roasting Department, the coffee beans are then transferred to the Packing Department. The following is a partial account of work in process for the Roasting Department as of July 31:
ACCOUNT Work in Process—Roasting Department | ACCOUNT NUMBER | ||||||||
Date | Article | Debit | Credit | Balance | |||||
Debit | Credit | ||||||||
Julio | 1 | Bal., 5,500 units, 1/5 completed | 10,560 | ||||||
31 | Direct materials, 247,500 units | 470,250 | 480,810 | ||||||
31 | Direct labour | 99,600 | 580.410 | ||||||
31 | Factory overhead | 24,850 | 605,260 | ||||||
31 | Goods transferred, 248,000 units | ? | |||||||
31 | bal., ? units, 2/5 completed | ? |
Required:
1. Prepare a production cost report and identify the missing quantities for work in process—Roasting Department.
2. Assuming that July 1 work-in-process inventory includes $9,900 of direct materials, determine the increase or decrease in cost per equivalent unit of direct materials and conversion between February and July.
Related Book For
Managerial Accounting
ISBN: 978-1337270595
14th edition
Authors: Carl S. Warren, James M. Reeve, Jonathan Duchac
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