In: Accounting
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$
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 | 15200 | |
Received from materials storeroom | 263000 | |
Total units accounted for by the Roasting Department | 278200 | |
Units to be assigned costs: | ||
Whole Units | Equivalent units of production | |
Transferred to packing department in december | 265200 | 265200 |
Inventory in process, December 31 | 13000 | 3900 |
Total units to be assigned costs | 278200 | 269100 |
Cost Information | ||
Costs per equivalent unit: | ||
Costs | ||
Total costs for December in Roasting Department | $672,750.00 | |
Total equivalent units | 269100 | |
Cost per equivalent unit (2) | $2.50 | |
Costs assigned to production: | ||
Costs | ||
Inventory in process, December 1 | $28,120.00 | |
Costs incurred in December | $644,630.00 | |
Total costs accounted for by the Roasting Department | $672,750.00 | |
Costs allocated to completed and partially completed units: | ||
Transferred to packing department in december | $663,000.00 | |
Inventory in process, December 31 | $9,750.00 | |
Total costs assigned by the Roasting Department | $672,750.00 |