Question

Cost of Production Report: Average Cost 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., 15,600 units, 25% completed				57,720
	31	Direct materials, 269,900 units	566,790			624,510
	31	Direct labor	322,410			946,920
	31	Factory overhead	463,955			1,410,875
	31	Goods transferred, 272,200 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 to account for during 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
Unit costs:
		Costs
Total costs for December in Roasting Department		$
Total equivalent units
Cost per equivalent unit		$
Costs charged 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

UNITS TO ACCOUNT FOR:
Beginning Work in Process units					15,600
Add: Units Started in Process					269,900
Total Units to account for:					285,500
Equivalent Units:
			Whole units	TOTAL
				% Completion	Units
Transferred to packing deptt			272200	100%	272,200
Ending Work in Process			13300	75%	9,975
Total Equivalent units			285500		282,175
TOTAL COST TO ACCOUNT FOR:
COST PER EQUIVALENT UNIT:
				total
Total cost added during the year				1,410,875
Equivalent Units				282,175
Cost per Equivalent unit				5
Cost charged to production:					Total
Inventory in Beg.					57720
Current cocst of manufacture					1353155
Total cost to be accounted for:					1410875
Cost allocated to completed and partially completed units:
Cost of units transferred to packing deptt					1361000
Inventory in process in Dec 31					49875
Total cost assigned in Roasting					1410875