Question

Cost of Production Report The 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, 800 pounds, 10% completed $4,408* *Direct materials (800 X $5.3) $4,240 Conversion (800 X 10% X $2.1) $168 $4,408 Coffee beans added during July, 25,000 pounds 131,250 Conversion costs during July 55,440 Work in process, July 31, 1,300 pounds, 60% completed ? Goods finished during July, 24,500 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 equivalent units of production for July. Direct materials and conversion 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 $ b. Compute and evaluate the change in cost per equivalent unit for direct materials and conversion from the previous month (June). 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

Cost of Production Report-Roasting Department
For the Month Ended July 31
Unit Information
Units charged to production:
Inventory in process, July 1			800
Received from materials storeroom			25000
Total units accounted for by the Roasting Department			25800
Units to be assigned costs:
		Equivalent Units
	Whole Units	Direct Materials	Conversion
Inventory in process, July 1	800	0	720
Started and completed in July	23700	23700	23700
Transferred to Packing Department in July	24500	23700	24420
Inventory in process, July 31	1300	1300	780
Total units to be assigned costs	25800	25000	25200
Cost Information
Costs per equivalent unit:
		Direct Materials	Conversion
Total costs for July in Roasting Department		131250	55440
Total equivalent units		25000	25200
Cost per equivalent unit		5.25	2.2
Costs charged to production:
	Direct Materials	Conversion	Total
Inventory in process, July 1			4408
Costs incurred in July			186690
Total costs accounted for by the Roasting Department			191098
Cost allocated to completed and partially completed units:
Inventory in process, July 1 balance			4408
To complete inventory in process, July 1	0	1584	1584
Cost of completed July 1 work in process			5992
Started and completed in July	124425	52140	176565
Transferred to Packing Department in July			182557
Inventory in process, July 31	6825	1716	8541
Total costs assigned by the Roasting Department			191098
2
	Increase or Decrease	Amount
Change in direct materials cost per equivalent unit	Decrease	0.05
Change in conversion cost per equivalent unit	Increase	0.1