Question
Question 1) Cost of Production Report The debits to Work in ProcessRoasting Department for Morning Brew Coffee Company for August, together with information concerning production,
Question 1) Cost of Production Report
The debits to Work in ProcessRoasting Department for Morning Brew Coffee Company for August, together with information concerning production, are as follows:
Work in process, August 1, 600 pounds, 50% completed | $2,730* | |||
*Direct materials (600 X $3.8) | $2,280 | |||
Conversion (600 X 50% X $1.5) | 450 | |||
$2,730 | ||||
Coffee beans added during August, 19,000 pounds | 71,250 | |||
Conversion costs during August | 30,400 | |||
Work in process, August 31, 1,000 pounds, 70% completed | ? | |||
Goods finished during August, 18,600 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.
If an amount is zero, enter in "0". 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 | |||
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 | |||
Cost 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 | $ |
___________________________________________________________________________________________
Question 2)
The Converting Department of Hopkinsville Company had 720 units in work in process at the beginning of the period, which were 30% complete. During the period, 15,200 units were completed and transferred to the Packing Department. There were 800 units in process at the end of the period, which were 40% complete. Direct materials are placed into the process at the beginning of production.
Determine the number of equivalent units of production with respect to direct materials and conversion costs. If an amount is zero, enter in "0".
Hopkinsville Company | |||
Number of Equivalent Units of Production | |||
Whole Units | Direct Materials Equivalent Units | Conversion Equivalent Units | |
Inventory in process, beginning | |||
Started and completed | |||
Transferred to Packing Department | |||
Inventory in process, ending | |||
Total |
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