Question

he 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, 500 pounds, 60% completed				$1,730*
	*Direct materials (500 X $2.8)	$1,400
	Conversion (500 X 60% X $1.1)	$330
		$1,730
Coffee beans added during July, 16,000 pounds				44,000
Conversion costs during July				19,056
Work in process, July 31, 800 pounds, 60% completed				?
Goods finished during July, 15,700 pounds				?

All direct materials are placed in process at the beginning of production.

a. Prepare a cost of production report, presenting the following computations:

Direct materials and conversion The number of production units that could have been completed within a given accounting period, given the resources consumed.equivalent units of production for July.

Direct materials and conversion The rate used to allocate costs between completed and partially completed production.costs per equivalent unit for July.

Cost of goods finished during July.

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			$

Answer 1

UNITS TO ACCOUNT FOR:
Beginning Work in Process units				500
Add: Units Started in Process				16,000
Total Units to account for:				16,500
UNITS TO BE ACCOUNTED FOR:
Units completed from Beginning WIP				500
Units started and completed				15,200
Ending Work in Process				800
Total Units to be accounted for:				16,500
Equivalent Units:
			Material Cost		Conversion
			% Completion	Units	% Completion	Units
Units completed from Beg. WIP			0%	0	40%	200
Units started and completed			100%	15,200	100%	15,200
Ending Work in Process			100%	800	60%	480
Total Equivalent units				16,000		15,880
COST PER EQUIVALENT UNIT:
			Material		Conversion
Total cost added during the year			44,000		19,056
Equivalent Units			16,000		15,880
Cost per Equivalent unit			2.75		1.2
TOTAL COST ACCOUNTED FOR:
			Material	Conversion	Total
Inventory in process					1730
Cost incurred in July					63056
Total cost to be account for					64786
Cost allocated to completed and partially completed units
Inventory in process beginning					1730
To complete inventory in Beginning			0	240	240
Cost of completed beginning WIP					1970
Started and completed in July			41800	18240	60040
Transferred to Finished goods					62010
Inventory In process ending			2200	576	2776
Total cost assigned					64786