Question

Sunrise Coffee Company roasts and packs coffee beans. The process begins in the Roasting Department. From the Roasting Department, the coffee beans are transferred to the Packing Department. The following is a partial work in process account of the Roasting Department at December 31:

ACCOUNT Work in Process-Roasting Department					ACCOUNT NO.
Date		Item	Debit		Credit	Balance
						Debit		Credit
Dec.	1	Bal., 16,900 units, 60% completed				33,800
	31	Direct materials, 292,400 units	330,412			364,212
	31	Direct labor	180,316			544,528
	31	Factory overhead	259,478			804,006
	31	Goods transferred, 294,900 units			?	?
	31	Bal., ? units, 20% completed				?

Required:

Prepare a cost of production report, using the average cost method, and identify the missing amounts for Work in Process—Roasting Department. If required, round your cost per equivalent unit answer to two decimal places.

Sunrise Coffee Company
Cost of Production Report-Roasting Department
For the Month Ended December 31
Unit Information
Units charged to production:
Inventory in process, December 1
Received from materials storeroom
Total units accounted for by the Roasting Department
Units to be assigned costs:
	Whole Units	Equivalent Units of Production
Transferred to Packing Department in December
Inventory in process, December 31
Total units to be assigned costs
Cost Information
Cost per equivalent unit:
		Costs
Total costs for December in Roasting Department		$
Total equivalent units
Cost per equivalent unit		$
Costs assigned to production:
Inventory in process, December 1		$
Costs incurred in December
Total costs accounted for by the Roasting Department		$
Costs allocated to completed and partially completed units:
Transferred to Packing Department in December		$
Inventory in process, December 31
Total costs assigned by the Roasting Department		$

Answer 1

Production Cost report

Unit Information
Units charged to production:
Inventory in process, December 1		16900
Received from materials storeroom		292400
Total units accounted for by the Roasting Department		309300
Units to be assigned costs:
	Whole Unit	Equivalent unit
Transferred to Packing Department in December	294900	294900
Inventory in process, December 31	14400	2880
Total units to be assigned costs	309300	297780
Cost information
Cost per equivalent unit:
		Costs
Total costs for December in Roasting Department		804006
Total equivalent units		297780
Cost per equivalent unit		2.7
Costs assigned to production:
Inventory in process, December 1		33800
Costs incurred in December		770206
Total costs accounted for by the Roasting Department		804006
Costs allocated to completed and partially completed units:
Transferred to Packing Department in December		796230
Inventory in process, December 31		7776
Total costs assigned by the Roasting Department		804006