Hippity Hoppy Brewery manufactures craft beer by a series of three processes, beginning with materials being introduced in the Distilling Department. From the Distilling Department, the materials pass through the Reaction Department and to the Packaging Department, emerging as finished brew. The balance in the account Work in Process-Reaction Department was as follows on August 1: Beginning Inventory-Reaction Department (12,000 units, 60% completed): Direct materials (12,000 X $2.35) $28,200 Conversion (12,000 X.60% X $0.70) 5,040 $33,240 The following costs were charged to the Reaction Department during August: Direct materials added in from Distilling Department: 320,000 units at $2.45 a unit $784,000 Direct labor 179,000 Factory Overhead 30,950 During August, 323,000 units of brew were completed and transferred out to the Packaging Dept. The inventory for the Reaction Department on August 31 was 9,000 units, 80% completed. Instructions Prepare a Cost of Production Report for the Reaction Department for month of August using the template provided. 1 COST OF PRODUCTION REPORT 2 UNITS Whole Units (step 1) Equivalent Units (step 2 3 Direct Materials Conversion 4 Units charged to production: 5 Inventory in process beg of month balance XOCOOOX XOOOOOXXXXXX 6 Received from materials storeroom XXX000xx 7 Total units accounted for by Dept. 00000OOX XOOOOOOOXox 8 Units to be assigned cost: 9 Inventory in process, beg of month balance 10 Started and completed in month, 11 Transferred to next dept during month 12 Inventory in process, end of month balance 13 Total units to be assigned cost 14 15 COSTS Direct Materials Conversion Total Costs 16 Unit Costs (step 3) 17 Total costs for month in dept 28 200 5,040 33,240 18 Total equivalent units (from step 2) units units 19 Cost per equivalent unit S 20 21 Total costs charged to production: 22 Inventory in Process, beg of month $ 23 Cost incurred in month S 24 Total costs accounted for by the dept. $ 25 26 Costs allocated to completed and partially completed units (step 4) 27 Inventory in process beg of month balance $ 28 To complete inventory in process, beg of month S $ $ 29 Started and completed in month $ S 30 Inventory in process, end of month $ S 31 Total costs assigned by the dept during month $ $ $ S on on 32 33 34 35 36 37 38 30 Sheet1 Sheet2 Sheets HE CH O a . G