Question

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, 500 pounds, 60% completed $1,730* *Direct materials (500 X $2.8) $1,400 Conversion (500 X 60% X $1.1) $330 $1,730 Coffee beans added during July, 16,000 pounds 44,000 Conversion costs during July 19,056 Work in process, July 31, 800 pounds, 60% completed ? Goods finished during July, 15,700 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.

Answer 1

	Weighted Average	Please hit LIKE button if this helped. For any further explanation, please put your query in comment, will get back to you.
A1.	Quantities			Equivalent Units
			Whole Units	Materials	Conversion Cost
	Units to be account for
	Work in Process, Beginning	60%	500
	add:Started into production		16000
	-Total Units		16500
	Units accounted for
	Transferred out		15700	15700	15700
	Work in Process, Ending	80 and 30% complete	800	800	480	60%	100%	60%
	Equivalent Units-Weighted Average		16500	16500	16180
A2.	Cost
				Materials	Convsersion Cost	Total
	Work in Process, Beginning			$        1,400	$                       330	$           1,730
	add:Started into production			$      44,000	$                 19,056	$         63,056
	Total Cost to account for			$      45,400	$                 19,386	$         64,786
	Equivalent Units			16500	16180
	Unit Cost	Total Cost/Equivalent Units		2.75	1.20	3.95
2.	Cost accounted for
	Work in Process, Ending		Material	Conversion	Total
	Equivalent Units		800	480
	Cost per Equivalent Unit		$            2.75	$          1.20
	-Total Cost Accounted For		$          2,201	$           575	$                   2,776
	Unit Completed and transferred out
	Equivalent Units		15700	15700
	Cost per Equivalent Unit		$            2.75	$          1.20
	-Total Cost Accounted For		$        43,199	$      18,811	$                 62,010
3.	Reconcilliation
	Cost to be accounted for:
	Cost of beginning work in process		$          1,730
	Cost added to production during period		$        63,056
	Total Cost to be accounted for		$        64,786
	Cost accounted for as follows:
	Cost of ending work in process		$          2,776
	Cost of units transferred out		$        62,010
	Total Cost accounted for		$        64,786