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Cost of Production Report Hana Coffee Company roasts and packs coffee beans. The process begins by...

Cost of Production Report

Hana Coffee Company roasts and packs coffee beans. The process begins by placing coffee beans into the Roasting Department. From the Roasting Department, coffee beans are then transferred to the Packing Department. The following is a partial work in process account of the Roasting Department at July 31:

ACCOUNT Work in Process—Roasting Department ACCOUNT NO.
Date Item Debit Credit Balance
Debit Credit
July 1 Bal., 30,000 units, 10% completed 121,800
31 Direct materials, 155,000 units 620,000 741,800
31 Direct labor 90,000 831,800
31 Factory overhead 33,272 865,072
31 Goods transferred, 149,000 units ?
31 Bal., ? units, 45% completed ?

Required:

1. Prepare a cost of production report, and identify the missing amounts for Work in Process—Roasting Department. If an amount is zero, enter "0". When computing cost per equivalent units, round to the nearest cent.

Hana Coffee Company
Cost of Production Report-Roasting Department
For the Month Ended July 31
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 Conversion
Inventory in process, July 1
Started and completed in July
Transferred to Packing Department in July
Inventory in process, July 31
Total units to be assigned costs
Cost Information
Cost per equivalent unit:
Direct Materials Conversion
Total costs for July in Roasting Department $ $
Total equivalent units
Cost per equivalent unit $ $
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 $
Costs 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 Packing Department in July $
Inventory in process, July 31
Total costs assigned by the Roasting Department $

2. Assuming that the July 1 work in process inventory includes $119,400 of direct materials, determine the increase or decrease in the cost per equivalent unit for direct materials and conversion between June and July. If required, round your answers to two decimal places.

Increase or Decrease Amount
Change in direct materials cost per equivalent unit $
Change in conversion cost per equivalent unit $

Solutions

Expert Solution

Beggining units 30000 Transferred out 1,49,000
Started into production 155000 Ending units 36,000
185000 185000
Equivalent units Material Conversion
Beginning units 30000 30000
Completion in current period 0% 90%
A 0 27000
Units started and completed 119000 119000
Completion 100% 100%
B 119000 119000
Ending Units 36,000 36,000
Completion 100% 45%
C 36000 16200
Total units A+B+C 155000 162200
Cost per equivalent units
Per unit cost Cost Total units Per unit cost
Material cost 620000 155000 4.00
Conversion cost 123272 162200 0.76
Total 743272 4.76
Cost of goods sold Material convertion cost
Beginning work in progress A 119400 2400 121800
Beginning inventory completed
Completion 0% 90%
Per unit cost 4.00 0.76
Units 30000 30000
Total cost   B 0 20520 20520
Units started and completed
Completion 100% 100%
Per unit cost 4.00 0.76
Units 119000 119000
Total cost    C 476000 90440 566440
Total cost A+B+C 595400 110960 708760
Ending work in progress
Completion 100% 45%
Per unit cost 4.00 0.76
Units 36,000 36,000
Total cost     144000 12312 156312
Cost per equivalent unit Material Conversion cost
For current period 4.00 0.76
For beginning inventory 3.98 0.80
increase (decrease) 0.02 -0.04

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