In: Accounting
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., 19,700 units, 25% completed | 49,644 | |||||
31 | Direct materials, 340,800 units | 487,344 | 536,988 | |||||
31 | Direct labor | 276,552 | 813,540 | |||||
31 | Factory overhead | 397,965 | 1,211,505 | |||||
31 | Goods transferred, 343,800 units | ? | ? | |||||
31 | Bal., ? units, 75% 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 | $ |
Check My Work
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 | 19,700.00 | |||||
Received from material storeroom | 487,344.00 | |||||
Total Units accounted for by the Roasting Department | 507,044.00 | |||||
Units to be assigned to costs: | ||||||
Whole Units | Equivalent Units of Production | |||||
Transferred to packing department in December | 343,800.00 | 343,800.00 | ||||
Inventory in Process, December 31 (Note-1) | 16,700.00 | 12,525.00 | ||||
Total Units to be assigned to costs | 360,500.00 | 356,325.00 | ||||
Cost Information: | ||||||
Cost per equivalent unit: | ||||||
Costs | ||||||
Total costs for December in roasting department (Note-2 ) | $ 1,211,505.00 | |||||
Total Equivalent Units | 356,325.00 | |||||
Cost per equivalent unit | $ 3.40 | |||||
Cost assigned to production: | ||||||
Inventory in Process, December 1 | $ 49,644.00 | |||||
Cost incurred in December | $ 1,161,861.00 | |||||
Total costs accounted for in December | $ 1,211,505.00 | |||||
Transferred to packing department in December | $ 1,168,920.00 | |||||
Inventory in Process, December 31 | $ 42,585.00 | |||||
Total costs assigned by the Roasting Department | $ 1,211,505.00 | |||||
Note1 : It is asssumed that one unit of input is required per unit of output | ||||||
Note2: Total cost during the month = 49644+487344+276552+397965 = 1211505 (This includes cost of opening inventory in process 49644). | ||||||
So, the "?" are answered as follows: | ||||||
Balance | ||||||
Item | Debit | Credit | Debit | Credit | ||
31. Goods Transferred, 343800 units | $ 1,168,920.00 | $ 42,585.00 | ||||
32. Balance, 16700 units, 75% complete | $ 42,585.00 | |||||