Question

Cost of Production Report

Hana Coffee Company roasts and packs coffee beans. The process begins by placing coffee beans into the Roasting Department. From the Roasting Department, coffee beans are then transferred to the Packing Department. The following is a partial work in process account of the Roasting Department at July 31:

ACCOUNT Work in Process—Roasting Department							ACCOUNT NO.
Date		Item	Debit		Credit		Balance
							Debit		Credit
July	1	Bal., 6,000 units, 3/5 completed					10,800
	31	Direct materials, 270,000 units	432,000				442,800
	31	Direct labor	86,400				529,200
	31	Factory overhead	21,600				550,800
	31	Goods transferred, 270,000 units			?
	31	Bal., ? units, 3/5 completed					?

Required:

1. Prepare a cost of production report, and identify the missing amounts for Work in Process—Roasting Department. If an amount is zero, enter "0". When computing cost per equivalent units, round to two decimal places.

Hana Coffee Company
Cost of Production Report-Roasting Department
For the Month Ended July 31
Unit Information
Units charged to production:
Inventory in process, July 1			fill in the blank 647034f8104c00f_1
Received from materials storeroom			fill in the blank 647034f8104c00f_2
Total units accounted for by the Roasting Department			fill in the blank 647034f8104c00f_3
Units to be assigned costs:
		Equivalent Units
	Whole Units	Direct Materials	Conversion
Inventory in process, July 1	fill in the blank 647034f8104c00f_4	fill in the blank 647034f8104c00f_5	fill in the blank 647034f8104c00f_6
Started and completed in July	fill in the blank 647034f8104c00f_7	fill in the blank 647034f8104c00f_8	fill in the blank 647034f8104c00f_9
Transferred to Packing Department in July	fill in the blank 647034f8104c00f_10	fill in the blank 647034f8104c00f_11	fill in the blank 647034f8104c00f_12
Inventory in process, July 31	fill in the blank 647034f8104c00f_13	fill in the blank 647034f8104c00f_14	fill in the blank 647034f8104c00f_15
Total units to be assigned costs	fill in the blank 647034f8104c00f_16	fill in the blank 647034f8104c00f_17	fill in the blank 647034f8104c00f_18
Cost Information
Cost per equivalent unit:
		Direct Materials	Conversion
Total costs for July in Roasting Department		$fill in the blank 647034f8104c00f_19	$fill in the blank 647034f8104c00f_20
Total equivalent units		fill in the blank 647034f8104c00f_21	fill in the blank 647034f8104c00f_22
Cost per equivalent unit		$fill in the blank 647034f8104c00f_23	$fill in the blank 647034f8104c00f_24
Costs assigned to production:
	Direct Materials	Conversion	Total
Inventory in process, July 1			$fill in the blank 647034f8104c00f_25
Costs incurred in July			fill in the blank 647034f8104c00f_26
Total costs accounted for by the Roasting Department			$fill in the blank 647034f8104c00f_27
Costs allocated to completed and partially completed units:
Inventory in process, July 1 balance			$fill in the blank 647034f8104c00f_28
To complete inventory in process, July 1	$fill in the blank 647034f8104c00f_29	$fill in the blank 647034f8104c00f_30	fill in the blank 647034f8104c00f_31
Cost of completed July 1 work in process			$fill in the blank 647034f8104c00f_32
Started and completed in July	fill in the blank 647034f8104c00f_33	fill in the blank 647034f8104c00f_34	fill in the blank 647034f8104c00f_35
Transferred to Molding Department in July			$fill in the blank 647034f8104c00f_36
Inventory in process, July 31	fill in the blank 647034f8104c00f_37	fill in the blank 647034f8104c00f_38	fill in the blank 647034f8104c00f_39
Total costs assigned by the Roasting Department			$fill in the blank 647034f8104c00f_40

2. Assuming that the July 1 work in process inventory includes $9,000 of direct materials, determine the increase or decrease in the cost per equivalent unit for direct materials and conversion between February and July. If required, round your answers to the nearest cent.

	Increase or Decrease	Amount
Change in direct materials cost per equivalent unit	Increase	$fill in the blank e25a2bfb0fa6f8f_2
Change in conversion cost per equivalent unit	Decrease	$fill in the blank e25a2bfb0fa6f8f_4

Answer 1