Question

Cost of Production Report: Weighted average method

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., 18,700 units, 40% completed				70,499
	31	Direct materials, 323,500 units	692,290			762,789
	31	Direct labor	399,472			1,162,261
	31	Factory overhead	574,850			1,737,111
	31	Goods transferred, 326,300 units			?	?
	31	Bal., ? units, 90% completed				?

Required:

Prepare a cost of production report, using the weighted average method, and identify the missing amounts for Work in Process—Roasting Department. Assume that direct materials are placed in process during production. 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

Cost of Production Report Roasting Department
For the Month Ended December 31
Unit Information
Units to account for during production:
Inventory in process, December 1	18700
Received from materials storeroom	323500
Total units accounted for by the Roasting Department	342200
Units to be assigned costs:
	Whole Units	Equivalent Units of Production
Transferred to Packing Department in December	326300	326300
Inventory in process, December 31	15900	14310
Total units to be assigned costs	342200	340610
Cost Information
Cost per Equivalent unit:
		Costs
Total costs for December in Roasting Department		1737111
Total equivalent units		340610
Cost per equivalent unit		5.10
Costs assigned to production:
Inventory in process, December 1		70499
Costs incurred in December		1666612
Total costs accounted for by the Roasting Department		1737111
Costs allocated to completed and partially completed units:
Transferred to Packing Department in December		1664130	=326300*5.10
Inventory in process, December 31		72981	=14310*5.10
Total costs assigned by the Roasting Department		1737111