Question

In: Accounting

The debits to Work in Process—Roasting Department for Morning Brew Coffee Company for August, together with...

The debits to Work in Process—Roasting Department for Morning Brew Coffee Company for August, together with information concerning production, are as follows:

Work in process, August 1, 900 pounds, 40% completed $4,086*
*Direct materials (900 X $3.9) $3,510
Conversion (900 X 40% X $1.6) $576
$4,086
Coffee beans added during August, 28,000 pounds 107,800
Conversion costs during August 47,090
Work in process, August 31, 1,400 pounds, 40% completed ?
Goods finished during August, 27,500 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.

Morning Brew Coffee Company
Cost of Production Report-Roasting Department
For the Month Ended August 31
Unit Information
Units charged to production:
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 Information
Costs 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 $

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

Solutions

Expert Solution

ANSWER: 1
Morning Brew Coffee Company
Cost of Production Report-Roasting Department
For the Month Ended August 31
Unit Information
Units charged to production:
Inventory in process, August 1 900
Received from materials storeroom 28000
Total units accounted for by the Roasting Department 28900
Units to be assigned costs:
Equivalent Units
Whole Units Direct Materials Conversion
Inventory in process, August 1 900 0 540
Started and completed in August 26600 26600 26600
Transferred to finished goods in August 27500 26600 27140
Inventory in process, August 31 1400 1400 560
Total units to be assigned costs 28900 28000 27700
Cost Information
Costs per equivalent unit:
Direct Materials Conversion
Total costs for August in Roasting Department 107800 47090
Total equivalent units 28000 27700
Cost per equivalent unit 3.85 1.70
Costs charged to production:
Direct Materials Conversion Total
Inventory in process, August 1 4086
Costs incurred in August 154890
Total costs accounted for by the Roasting Department 158976
Cost allocated to completed and partially completed units:
Inventory in process, August 1 balance 4086
To complete inventory in process, August 1 0 (540*1.7) 918 918
Cost of completed August 1 work in process 5004
Started and completed in August (26600*3.85) 102410 (26600*1.71) 45220   147630
Transferred to finished goods in August ( 152634
Inventory in process, August 31 (1400*3.85)5390 (560*1.70) 952 6342
Total costs assigned by the Roasting Department 158976
ANSWER: 2
Increase or Decrease Amount
Change in direct materials cost per equivalent unit Decrease 0.05 =3.9 - 3.85
Change in conversion cost per equivalent unit Increase 0.10 =1.6 - 1.70

Related Solutions

The debits to Work in Process—Roasting Department for Morning Brew Coffee Company for August, together with...
The debits to Work in Process—Roasting Department for Morning Brew Coffee Company for August, together with information concerning production, are as follows: Work in process, August 1, 900 pounds, 50% completed $4,635* *Direct materials (900 X $4.3) $3,870 Conversion (900 X 50% X $1.7) $765 $4,635 Coffee beans added during August, 28,000 pounds 119,000 Conversion costs during August 50,454 Work in process, August 31, 1,400 pounds, 70% completed ? Goods finished during August, 27,500 pounds ? All direct materials are...
The debits to Work in Process—Roasting Department for Morning Brew Coffee Company for August, together with...
The debits to Work in Process—Roasting 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 $1,872* *Direct materials (400 X $4.5) $1,800 Conversion (400 X 10% X $1.8) 72 $1,872 Coffee beans added during August, 13,000 pounds 57,850 Conversion costs during August 24,586 Work in process, August 31, 700 pounds, 40% completed ? Goods finished during August, 12,700 pounds ? All direct materials are...
The debits to Work in Process—Roasting Department for Morning Brew Coffee Company for August, together with...
The debits to Work in Process—Roasting Department for Morning Brew Coffee Company for August, together with information concerning production, are as follows: Work in process, August 1, 1,200 pounds, 40% completed $3,888* *Direct materials (1,200 X $2.8) $3,360 Conversion (1,200 X 40% X $1.1) $528 $3,888 Coffee beans added during August, 38,000 pounds 104,500 Conversion costs during August 45,264 Work in process, August 31, 2,000 pounds, 50% completed ? Goods finished during August, 37,200 pounds ? All direct materials are...
The debits to Work in Process—Roasting Department for Morning Brew Coffee Company for August, together with...
The debits to Work in Process—Roasting Department for Morning Brew Coffee Company for August, together with information concerning production, are as follows: Work in process, August 1, 1,100 pounds, 10% completed $3,091* *Direct materials (1,100 X $2.7) $2,970 Conversion (1,100 X 10% X $1.1) 121 $3,091 Coffee beans added during August, 34,000 pounds 90,100 Conversion costs during August 40,476 Work in process, August 31, 1,800 pounds, 30% completed ? Goods finished during August, 33,300 pounds ? All direct materials are...
The debits to Work in Process—Roasting Department for Morning Brew Coffee Company for August, together with...
The debits to Work in Process—Roasting Department for Morning Brew Coffee Company for August, together with information concerning production, are as follows: Work in process, August 1, 1,200 pounds, 10% completed $3,120* *Direct materials (1,200 X $2.5) $3,000 Conversion (1,200 X 10% X $1) $120 $3,120 Coffee beans added during August, 38,000 pounds 93,100 Conversion costs during August 41,668 Work in process, August 31, 2,000 pounds, 40% completed ? Goods finished during August, 37,200 pounds ? All direct materials are...
The debits to Work in Process—Roasting Department for Morning Brew Coffee Company for August, together with...
The debits to Work in Process—Roasting Department for Morning Brew Coffee Company for August, together with information concerning production, are as follows: Work in process, August 1, 700 pounds, 60% completed $4,410* *Direct materials (700 X $5.1) $3,570 Conversion (700 X 60% X $2) 840 $4,410 Coffee beans added during August, 22,000 pounds 111,100 Conversion costs during August 45,171 Work in process, August 31, 1,100 pounds, 30% completed ? Goods finished during August, 21,600 pounds ? All direct materials are...
The debits to Work in Process—Roasting Department for Morning Brew Coffee Company for August, together with...
The debits to Work in Process—Roasting Department for Morning Brew Coffee Company for August, together with information concerning production, are as follows: Work in process, August 1, 800 pounds, 10% completed $3,912* *Direct materials (800 X $4.7) $3,760 Conversion (800 X 10% X $1.9) $152 $3,912 Coffee beans added during August, 25,000 pounds 116,250 Conversion costs during August 50,400 Work in process, August 31, 1,300 pounds, 60% completed ? Goods finished during August, 24,500 pounds ? All direct materials are...
The debits to Work in Process—Roasting Department for Morning Brew Coffee Company for August, together with...
The debits to Work in Process—Roasting Department for Morning Brew Coffee Company for August, together with information concerning production, are as follows: Work in process, August 1, 1,000 pounds, 10% completed $4,160* *Direct materials (1,000 X $4) $4,000 Conversion (1,000 X 10% X $1.6) $160 $4,160 Coffee beans added during August, 31,000 pounds 122,450 Conversion costs during August 52,598 Work in process, August 31, 1,600 pounds, 40% completed ? Goods finished during August, 30,400 pounds ? All direct materials are...
The debits to Work in Process—Roasting Department for Morning Brew Coffee Company for August, together with...
The debits to Work in Process—Roasting Department for Morning Brew Coffee Company for August, together with information concerning production, are as follows: Work in process, August 1, 600 pounds, 20% completed $3,372* *Direct materials (600 X $5.2) $3,120 Conversion (600 X 20% X $2.1) $252 $3,372 Coffee beans added during August, 19,000 pounds 97,850 Conversion costs during August 41,316 Work in process, August 31, 1,000 pounds, 30% completed ? Goods finished during August, 18,600 pounds ? All direct materials are...
The debits to Work in Process—Roasting Department for Morning Brew Coffee Company for August, together with...
The debits to Work in Process—Roasting Department for Morning Brew Coffee Company for August, together with information concerning production, are as follows: Work in process, August 1, 500 pounds, 60% completed $2,300* *Direct materials (500 X $3.7) $1,850 Conversion (500 X 60% X $1.5) 450 $2,300 Coffee beans added during August, 16,000 pounds 58,400 Conversion costs during August 25,280 Work in process, August 31, 800 pounds, 50% completed ? Goods finished during August, 15,700 pounds ? All direct materials are...
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT