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 DepartmentACCOUNT NO.

DateItemDebitCreditBalance

DebitCredit

Dec.1Bal., 15,200 units, 80% completed   28,120  

31Direct materials, 263,000 units276,150  304,270  

31Direct labor151,077  455,347  

31Factory overhead217,403  672,750  

31Goods transferred, 265,200 units  ??  

31Bal., ? units, 30% 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 UnitsEquivalent 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

Sunrise Coffee Company

Cost of Production Report-Roasting Department

For the Month Ended December 31

Units charged to production:

Particulars	Units
Inventory in process, December 1	15,200
Received from materials storeroom	263,000
Total units accounted for by the Roasting Department	278,200

Units to be assigned costs:

Particulars	Whole Units	Equivalent Units of Production
Transferred to Packing Department in December	265,200	265,200
Inventory in process, December 31 (13,000*30%)	13,000	3,900
Total units to be assigned costs	278,200	269,100

Cost Information

Cost per equivalent unit:

Particulars	Costs ($)
Total costs for December in Roasting Department	672,750
Total equivalent units	269,100
Cost per equivalent unit	2.50

Costs assigned to production:

Particulars	Amount ($)
Inventory in process, December 1	28,120
Costs incurred in December	644,630
Total costs accounted for by the Roasting Department	672,750

Costs allocated to completed and partially completed units:

Particulars	Amount ($)
Transferred to Packing Department in December (262,500*2.50)	656,250
Inventory in process, December 31 (3,900*2.50)	9,750
Total costs assigned by the Roasting Department	666,000