Question

Ch 17#14

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 Department					ACCOUNT NO.
Date		Item	Debit		Credit	Balance
						Debit		Credit
Dec.	1	Bal., 15,100 units, 25% completed				42,431
	31	Direct materials, 261,200 units	417,920			460,351
	31	Direct labor	236,746			697,097
	31	Factory overhead	340,683			1,037,780
	31	Goods transferred, 263,500 units			?	?
	31	Bal., ? units, 75% completed				?

Required:

Prepare a cost of production report, using the average cost method, and identify the missing amounts for Work in Process—Roasting Department. 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 Units	Equivalent 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

Answer 1

unit information
inventory in process,december 1				15,100
received from materials storeroom				261,200
total units accounted for				276,300
				Whole	Equivalent units
				units	of production
units to be assigned costs
transferred to packing department				263,500	239,100
inventory in process,december31				12,800	8700
total units to be assinged costs				276,300	247,800
Cost Information
Unit costs:
				costs
total costs for december in roasting deptt				1,037,780
total equivalent units				247,800
cost per equivalent units				4.19
Costs charged to production:
inventory in process,december 1				42,431
costs incurred in december				995,349
total costs accounted for by roasting deptt				1,037,780
costs allocated to completed &partially
transferred to packing deptt in december				1001345
inventory in process,december 31				36435
total costs assigned by roasting deptt				1037780