Question

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., 14,200 units, 60% completed				52,540
	31	Direct materials, 245,700 units	515,970			568,510
	31	Direct labor	279,862			848,372
	31	Factory overhead	402,728			1,251,100
	31	Goods transferred, 247,800 units			?	?
	31	Bal., ? units, 20% 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		14200
Received from materials storeroom		245700
Total units accounted for by the Roasting Department		259900
Units to be assigned costs:
	Whole Units	Equivalent Units of Production
Transferred to Packing Department in December	247800	247800
Inventory in process, December 31	12100	2420
Total units to be assigned costs	259900	250220
Cost Information
Unit costs:
		Costs
Total costs for December in Roasting Department		1251100
Total equivalent units		250220
Cost per equivalent unit		5
Costs charged to production:
Inventory in process, December 1		52540
Costs incurred in December		1198560
Total costs accounted for by the Roasting Department		1251100
Costs allocated to completed and partially completed units:
Transferred to Packing Department in December		1239000
Inventory in process, December 31		12100
Total costs assigned by the Roasting Department		1251100