Question

If you are not going to answer all the questions. then do not answer any.

3.) The following information concerns production in the Baking Department for March. All direct materials are placed in process at the beginning of production.

ACCOUNT Work in Process—Baking Department							ACCOUNT NO.
Date		Item	Debit		Credit		Balance
							Debit		Credit
Mar.	1	Bal., 6,300 units, 4/5 completed					16,884
	31	Direct materials, 113,400 units	226,800				243,684
	31	Direct labor	65,490				309,174
	31	Factory overhead	36,840				346,014
	31	Goods finished, 114,900 units			332,958		13,056
	31	Bal. ? units, 4/5 completed					13,056

a. Based on the above data, determine each cost listed below. Round "cost per equivalent unit" answers to the nearest cent.

1. Direct materials cost per equivalent unit	$
2. Conversion cost per equivalent unit	$
3. Cost of the beginning work in process completed during March	$
4. Cost of units started and completed during March	$
5. Cost of the ending work in process	$

b. Assuming that the direct materials cost is the same for February and March, did the conversion cost per equivalent unit increase, decrease, or remain the same in March?

4.) 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, 30% completed				$4,928*
	*Direct materials (1,100 X $4)	$4,400
	Conversion (1,100 X 30% X $1.6)	$528
		$4,928
Coffee beans added during August, 34,000 pounds				134,300
Conversion costs during August				56,967
Work in process, August 31, 1,800 pounds, 30% completed				?
Goods finished during August, 33,300 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

Answer 1

3
		Equivalent Units
	Whole Units	Direct Materials	Conversion
Inventory in process, March 1	6300	0	1260
Started and completed in March	108600	108600	108600
Transferred to Finished goods in March	114900	108600	109860
Inventory in process, March 31	4800	4800	3840
Total units to be assigned costs	119700	113400	113700
Cost Information
Costs per equivalent unit:
		Direct Materials	Conversion
Total costs for March in Baking Department		226800	102330
Total equivalent units		113400	113700
Cost per equivalent unit		2.00	0.90
Costs charged to production:
	Direct Materials	Conversion	Total
Inventory in process, March 1			16884
Costs incurred in March			329130
Total costs accounted for by the Baking Department			346014
Cost allocated to completed and partially completed units:
Inventory in process, March 1 balance			16884
To complete inventory in process, March 1	0	1134	1134
Cost of completed March 1 work in process			18018
Started and completed in March	217200	97740	314940
Transferred to Finished goods in March			332958
Inventory in process, March 31	9600	3456	13056
Total costs assigned by the Baking Department			346014
1. Direct materials cost per equivalent unit $2.00
2. Conversion cost per equivalent unit $0.90
3. Cost of beginning work in process completed during March $18018
4. Cost of units started and completed during March $314940
5. Cost of the ending work in process $13056
b
Conversion cost per equivalent unit prior period = (16884-6300*2.00)/(6300*4/5)= $0.85
Conversion cost per equivalent unit increase

4
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			1100
Received from materials storeroom			34000
Total units accounted for by the Roasting Department			35100
Units to be assigned costs:
		Equivalent Units
	Whole Units	Direct Materials	Conversion
Inventory in process, August 1	1100	0	770
Started and completed in August	32200	32200	32200
Transferred to finished goods in August	33300	32200	32970
Inventory in process, August 31	1800	1800	540
Total units to be assigned costs	35100	34000	33510
Cost Information
Costs per equivalent unit:
		Direct Materials	Conversion
Total costs for August in Roasting Department		134300	56967
Total equivalent units		34000	33510
Cost per equivalent unit		3.95	1.70
Costs charged to production:
	Direct Materials	Conversion	Total
Inventory in process, August 1			4928
Costs incurred in August			191267
Total costs accounted for by the Roasting Department			196195
Cost allocated to completed and partially completed units:
Inventory in process, August 1 balance			4928
To complete inventory in process, August 1	0	1309	1309
Cost of completed August 1 work in process			6237
Started and completed in August	127190	54740	181930
Transferred to finished goods in August			188167
Inventory in process, August 31	7110	918	8028
Total costs assigned by the Roasting Department			196195
b
	Increase or Decrease	Amount
Change in direct materials cost per equivalent unit	Decrease	0.05	=4.00-3.95
Change in conversion cost per equivalent unit	Increase	0.10	=1.70-1.60