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, 800 pounds, 50% completed				$2,960*
	*Direct materials (800 X $3.10)	$2,480
	Conversion (800 X 50% X $1.20)	480
		$2,960
Coffee beans added during August, 25,000 pounds				76,250
Conversion costs during August				32,513
Work in process, August 31, 1,300 pounds, 70% completed				?
Goods finished during August, 24,500 pounds				?

Question Content Area

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.

Morning Brew Coffee Company

Cost of Production Report-Roasting Department

For the Month Ended August 31

Units charged to production:		Number of Units
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 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

a. How much more (percentage amount) needed to be done to the beginning work in process units to make the units complete to transfer to the next department? Did these units require more material cost or more conversion cost? How much, in terms of cost, had been done to these units in the prior period? In order for units to be transferred to the next department, the units have to be complete with respect to both materials and conversion. When are materials added in the process? How complete are the units in ending inventory with respect to materials? How complete are the units in ending inventory with respect to conversion? Materials and conversion cost needs to be allocated among the equivalent units. Are the numbers of equivalent units the same for materials and conversion?

Question Content Area

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