Question

Cost of Production Report: Weighted average method

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., 12,200 units, 30% completed				45,994
	31	Direct materials, 211,100 units	451,754			497,748
	31	Direct labor	258,494			756,242
	31	Factory overhead	371,980			1,128,222
	31	Goods transferred, 212,900 units			?	?
	31	Bal., ? units, 80% completed				?

Required:

Prepare a cost of production report, using the weighted average method, and identify the missing amounts for Work in Process—Roasting Department. Assume that direct materials are placed in process during production. 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

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	12200
Received from materials storeroom	211100
Total units accounted for by the Roasting Department	223300
Units to be assigned costs:
	Whole Units	Equivalent Units of Production
Transferred to Packing Department in December	212900	212900
Inventory in process, December 31	10400	8320
Total units to be assigned costs	223300	221220
Cost Information
Cost per equivalent unit:
		Costs
Total costs for December in Roasting Department		$ 1,128,222
Total equivalent units		$     221,220
Cost per equivalent unit		$          5.10
Costs assigned to production:
Inventory in process, December 1		$       45,994
Costs incurred in December		$ 1,082,228
Total costs accounted for by the Roasting Department		$ 1,128,222
Costs allocated to completed and partially completed units:
Transferred to Packing Department in December		$ 1,085,790
Inventory in process, December 31		$       42,432
Total costs assigned by the Roasting Department		$ 1,128,222