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., 14,600 units, 25% completed 38,836 31 Direct materials, 252,600 units 381,426 420,262 31 Direct labor 217,504 637,766 31 Factory overhead 312,994 950,760 31 Goods transferred, 254,800 units ? ? 31 Bal., ? units, 75% 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.

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

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.

Units charged to production:
Inventory in process, December 1		14600
Received from materials storeroom		252600
Total units accounted for by the Roasting Department		267200
Units to be assigned costs:
	Whole Units	Equivalent Units of Production
Transferred to Packing Department in December	254800	254800
Inventory in process, December 31	12400	12400*75% = 9300
Total units to be assigned costs	267200	264100
Cost Information
Cost per equivalent unit:
		Costs
Total costs for December in Roasting Department		$950760
Total equivalent units		264100
Cost per equivalent unit		$3.6
Costs assigned to production:
Inventory in process, December 1		$38836
Costs incurred in December		911924
Total costs accounted for by the Roasting Department		$950760
Costs allocated to completed and partially completed units:
Transferred to Packing Department in December		254800*3.6 = 917280
Inventory in process, December 31		9300*3.6 = 33480
Total costs assigned by the Roasting Department		$950760