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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,

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, 400 pounds, 10% completed $1,164*
*Direct materials (400 X $2.80) $1,120
Conversion (400 X 10% X $1.10) 44
$1,164
Coffee beans added during August, 13,000 pounds 35,750
Conversion costs during August 15,612
Work in process, August 31, 700 pounds, 50% completed ?
Goods finished during August, 12,700 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 is zero, enter in "0". For the cost per equivalent unit, round your answer to two decimal places.

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

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