Question

1. The debits to Work in Process—Roasting Department for St. Arbucks Coffee Company for July 2016, together with information concerning production, are as follows:

   Work in process, July 1, 600 pounds, 40% completed				$1,944*
   	*Direct materials (600 X $2.8)	$1,680
   	Conversion (600 X 40% X $1.1)	$264
   		$1,944
   Coffee beans added during July, 19,000 pounds				52,250
   Conversion costs during July				22,512
   Work in process, July 31, 1,000 pounds, 40% completed				?
   Goods finished during July, 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:

   1. Direct materials and conversion equivalent units of production for July.
   2. Direct materials and conversion costs per equivalent unit for July.
   3. Cost of goods finished during July.
   4. Cost of work in process at July 31, 2016.

   If an amount is zero, enter in "0". For the cost per equivalent unit, round your answer to two decimal places.

   St. Arbucks Coffee Company
   Cost of Production Report-Roasting Department
   For the Month Ended July 31, 2016
   Unit Information
   Units charged to production:
   Inventory in process, July 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, July 1
   Started and completed in July
   Transferred to finished goods in July
   Inventory in process, July 31
   Total units to be assigned costs
   Cost Information
   Costs per equivalent unit:
   		Direct Materials	Conversion
   Total costs for July in Roasting Department		$	$
   Total equivalent units
   Cost per equivalent unit (2)		$	$
   Costs assigned to production:
   	Direct Materials	Conversion	Total
   Inventory in process, July 1			$
   Costs incurred in July
   Total costs accounted for by the Roasting Department			$
   Cost allocated to completed and partially completed units:
   Inventory in process, July 1 balance			$
   To complete inventory in process, July 1	$	$
   Cost of completed July 1 work in process			$
   Started and completed in July
   Transferred to finished goods in July (3)			$
   Inventory in process, July 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 (June). 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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1. The debits to Work in Process—Roasting Department for St. Arbucks Coffee Company for July 2016, together with information concerning production, are as follows:

   Work in process, July 1, 600 pounds, 40% completed				$1,944*
   	*Direct materials (600 X $2.8)	$1,680
   	Conversion (600 X 40% X $1.1)	$264
   		$1,944
   Coffee beans added during July, 19,000 pounds				52,250
   Conversion costs during July				22,512
   Work in process, July 31, 1,000 pounds, 40% completed				?
   Goods finished during July, 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:

   1. Direct materials and conversion equivalent units of production for July.
   2. Direct materials and conversion costs per equivalent unit for July.
   3. Cost of goods finished during July.
   4. Cost of work in process at July 31, 2016.

   If an amount is zero, enter in "0". For the cost per equivalent unit, round your answer to two decimal places.

   St. Arbucks Coffee Company
   Cost of Production Report-Roasting Department
   For the Month Ended July 31, 2016
   Unit Information
   Units charged to production:
   Inventory in process, July 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, July 1
   Started and completed in July
   Transferred to finished goods in July
   Inventory in process, July 31
   Total units to be assigned costs
   Cost Information
   Costs per equivalent unit:
   		Direct Materials	Conversion
   Total costs for July in Roasting Department		$	$
   Total equivalent units
   Cost per equivalent unit (2)		$	$
   Costs assigned to production:
   	Direct Materials	Conversion	Total
   Inventory in process, July 1			$
   Costs incurred in July
   Total costs accounted for by the Roasting Department			$
   Cost allocated to completed and partially completed units:
   Inventory in process, July 1 balance			$
   To complete inventory in process, July 1	$	$
   Cost of completed July 1 work in process			$
   Started and completed in July
   Transferred to finished goods in July (3)			$
   Inventory in process, July 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 (June). 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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Answer 1

a.

St. Arbucks Coffee Company Cost of Production Report-Roasting Department
For the Month Ended July 31, 2016
Unit Information
Units charged to production:
Inventory in process, July 1			600
Received from materials storeroom			19,000
Total units accounted for by the Roasting Department			19,600
Units to be assigned costs:
		Equivalent Units
	Whole Units	Direct Materials (1)	Conversion (1)
Inventory in process, July 1	600	0	360 (600*60%)
Started and completed in July (19,000 - 1,000)	18,000	18,000	18,000
Transferred to finished goods in July	18,600	18,000	18,360
Inventory in process, July 31	1,000	1,000	400
Total units to be assigned costs	19,600	19,000	18,760
Cost Information
Cost per equivalent unit:
		Direct Materials	Conversion
Total costs for July in Roasting Department		$52,250	$22,512
Total equivalent units		19,000	18,760
Cost per equivalent unit (2)		$2.75	$1.2
Costs assigned to production:
	Direct Materials	Conversion	Total
Inventory in process, July 1			$1,944
Costs incurred in July			74,762
Total costs accounted for by the Roasting Department			$76,706
Costs allocated to completed and partially completed units:
Inventory in process, July 1 balance			$1,944
To complete inventory in process, July 1 (360*$1.2)	$0	$432	432
Cost of completed July 1 work in process			$2,376
Started and completed in July	$49,500 (18,000*$2.75)	$21,600 (18,000*$1.2)	$71,100
Transferred to finished goods in July (3)			$73,476
Inventory in process, July 31 (4)	$2,750 (1,000*$2.75)	$480 (400*$1.2)	$3,230
Total costs assigned by the Roasting Department			$76,706
b.
	Increase or Decrease	Amount
Change in Direct material cost per equivalent unit	Decrease	$0.05 ($2.75 - 2.8)
Change in Conversion cost per equivalent unit	Increase	$0.1 ($1.2 - 1.1)