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., 13,200 units, 80% completed				37,092
	31	Direct materials, 228,400 units	365,440			402,532
	31	Direct labor	199,051			601,583
	31	Factory overhead	286,439			888,022
	31	Goods transferred, 230,300 units			?	?
	31	Bal., ? units, 30% 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

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		13200
Received from materials storeroom		228400
Total units accounted for by the Roasting Department		241600
Units to be assigned costs:
	Whole Units	Equivalent Units of Production
Transferred to Packing Department in December	230300	230300
Inventory in process, December 31	11300	3390
Total units to be assigned costs	241600	233690
Cost Information
Unit costs:
		Costs
Total costs for December in Roasting Department		888022
Total equivalent units		233690
Cost per equivalent unit		3.8
Costs charged to production:
Inventory in process, December 1		37092
Costs incurred in December		850930
Total costs accounted for by the Roasting Department		888022
Costs allocated to completed and partially completed units:
Transferred to Packing Department in December		875140
Inventory in process, December 31		12882
Total costs assigned by the Roasting Department		888022