Question

Cost of Production Report

Fresh Mountain 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 March 31, 2016:

ACCOUNT Work in Process—Roasting Department							ACCOUNT NO.
Date		Item	Debit		Credit		Balance
							Debit		Credit
Mar.	1	Bal., 1,500 units, 30% completed					6,150
	31	Direct materials, 22,300 units	86,970				93,120
	31	Direct labor	11,900				105,020
	31	Factory overhead	5,772				110,792
	31	Goods transferred, 21,700 units			?
	31	Bal., ? units, 40% 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 in a zero "0". When computing cost per equivalent units, round to the nearest cent.

Fresh Mountain Coffee Company
Cost of Production Report-Roasting Department
For the Month Ended March 31, 2016
Unit Information
Units charged to production:
Inventory in process, March 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, March 1
Started and completed in March
Transferred to Packing Department in March
Inventory in process, March 31
Total units to be assigned costs
Cost Information
Costs per equivalent unit:
		Direct Materials	Conversion
Total costs for March in Roasting Department		$	$
Total equivalent units
Cost per equivalent unit		$	$
Costs charged to production:
	Direct Materials	Conversion	Total
Inventory in process, March 1			$
Costs incurred in March
Total costs accounted for by the Roasting Department			$
Cost allocated to completed and partially completed units:
Inventory in process, March 1 balance			$
To complete inventory in process, March 1	$	$
Cost of completed March 1 work in process			$
Started and completed in March
Transferred to Packing Department in March			$
Inventory in process, March 31
Total costs assigned by the Roasting Department			$

2. Assuming that the March 1 work in process inventory includes $5,700 of direct materials, determine the increase or decrease in the cost per equivalent unit for direct materials and conversion between February and March. If required, round your answers to two decimal places.

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

Answer 1

UNITS TO ACCOUNT FOR:
Beginning Work in Process units					1,500
Add: Units Started in Process					22,300
Total Units to account for:					23,800
Equivalent Units:
			Whole units	Material Cost		Conversion
				% Completion	Units	% Completion	Units
Units completed from Beg. WIP			1500	0%	0	70%	1,050
Units started and completed			20200	100%	20,200	100%	20,200
Transferred to Molding deptt			21700		20,200		21,250
Ending Work in Process			2100	100%	2,100	40%	840
Total Equivalent units					22,300		22,090
TOTAL COST TO ACCOUNT FOR:
COST PER EQUIVALENT UNIT:
				Material		Conversion
Total cost added during the year				86,970		17,672
Equivalent Units				22,300		22,090
Cost per Equivalent unit				3.9		0.8
Cost charged to production:				Material	Convesion	Total
Inventory in Beg.						6150
Current cocst of manufacture						104642
Total cost to be accounted for:						110792
Cost allocated to completed and partially completed units:
Inventory in Beg.						6150
Cost to complete				0	840	840
Cost of completed Beg. WIP						6990
Started and completed				78780	16160	94940
Transfrred to Molding						101930
Inveentory in Mar31				8190	672	8862
Total cost assigned						110792
Req 2:
Mmateriall c cost per unit in last year (5700/1500):						3.8
Conversion cost perr unit last year(6150-5700)/450:						1
Change in material			Increase
Change in conversion			Decrease