Question

The debits to Work in Process—Roasting Department for Morning Brew Coffee Company for August, together with information concerning production, are as follows:

Work in process, August 1, 1,000 pounds, 10% completed				$4,160*
	*Direct materials (1,000 X $4)	$4,000
	Conversion (1,000 X 10% X $1.6)	$160
		$4,160
Coffee beans added during August, 31,000 pounds				122,450
Conversion costs during August				52,598
Work in process, August 31, 1,600 pounds, 40% completed				?
Goods finished during August, 30,400 pounds				?

All direct materials are placed in process at the beginning of production.

a. Prepare a cost of production report, presenting the following computations:

Direct materials and conversion equivalent units of production for August.

Direct materials and conversion costs per equivalent unit for August.

Cost of goods finished during August.

Cost of work in process at August 31.

If an amount is zero, enter in "0". For the cost per equivalent unit, round your answer to two decimal places.

Morning Brew Coffee Company
Cost of Production Report-Roasting Department
For the Month Ended August 31
Unit Information
Units charged to production:
Inventory in process, August 1
Received from materials storeroom
Total units accounted for by the Roasting Department
Units to be assigned costs:
		Equivalent Units
	Whole Units	Direct Materials (1)	Conversion (1)
Inventory in process, August 1
Started and completed in August
Transferred to finished goods in August
Inventory in process, August 31
Total units to be assigned costs
Cost Information
Costs per equivalent unit:
		Direct Materials	Conversion
Total costs for August in Roasting Department		$	$
Total equivalent units
Cost per equivalent unit (2)		$	$
Costs assigned to production:
	Direct Materials	Conversion	Total
Inventory in process, August 1			$
Costs incurred in August
Total costs accounted for by the Roasting Department			$
Costs allocated to completed and partially completed units:
Inventory in process, August 1 balance			$
To complete inventory in process, August 1	$	$
Cost of completed August 1 work in process			$
Started and completed in August
Transferred to finished goods in August (3)			$
Inventory in process, August 31 (4)
Total costs assigned by the Roasting Department			$

Answer 1

Cost of Production Report-Roasting Department
For the Month Ended August 31
Unit Information
Units charged to production:
Inventory in process, August 1			1000
Received from materials storeroom			31000
Total units accounted for by the Roasting Department			32000
Units to be assigned costs:
		Equivalent Units
	Whole Units	Direct Materials	Conversion
Inventory in process, August 1	1000	0	900
Started and completed in August	29400	29400	29400
Transferred to Packing Department in August	30400	29400	30300
Inventory in process, August 31	1600	1600	640
Total units to be assigned costs	32000	31000	30940
Cost Information
Costs per equivalent unit:
		Direct Materials	Conversion
Total costs for August in Roasting Department		122450	52598
Total equivalent units		31000	30940
Cost per equivalent unit		3.95	1.7
Costs charged to production:
	Direct Materials	Conversion	Total
Inventory in process, August 1			4160
Costs incurred in August			175048
Total costs accounted for by the Roasting Department			179208
Cost allocated to completed and partially completed units:
Inventory in process, August 1 balance			4160
To complete inventory in process, August 1	0	1530	1530
Cost of completed August 1 work in process			5690
Started and completed in August	116130	49980	166110
Transferred to Packing Department in August			171800
Inventory in process, August 31	6320	1088	7408
Total costs assigned by the Roasting Department			179208