Question

Cost of Production Report 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, 600 pounds, 50% completed				$3,540*
	*Direct materials (600 X $4.9)	$2,940
	Conversion (600 X 50% X $2)	$600
		$3,540
Coffee beans added during August, 19,000 pounds				92,150
Conversion costs during August				39,060
Work in process, August 31, 1,000 pounds, 30% completed				?
Goods finished during August, 18,600 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			$

b. Compute and evaluate the change in cost per equivalent unit for direct materials and conversion from the previous month (July). If required, round your answers to the nearest cent.

	Increase or Decrease	Amount
Change in direct materials cost per equivalent unit		$
Change in conversion cost per equivalent unit		$
2- The Converting Department of Soft Touch Towel and Tissue Company had 760 units in work in process at the beginning of the period, which were 70% complete. During the period, 16,000 units were completed and transferred to the Packing Department. There were 840 units in process at the end of the period, which were 70% complete. Direct materials are placed into the process at the beginning of production. Determine the number of equivalent units of production with respect to direct materials and conversion costs. If an amount is zero, enter in "0". Soft Touch Towel and Tissue Company Number of Equivalent Units of Production    Whole Units    Direct Materials Equivalent Units Conversion Equivalent Units Inventory in process, beginning ; Started and completed ; Transferred to Packing Department : Inventory in process, ending : Total :

Answer 1

UNITS TO ACCOUNT FOR:
Beginning Work in Process units					600
Add: Units Started in Process					19,000
Total Units to account for:					19,600
UNITS TO BE ACCOUNTED FOR:
Equivalent Units:
			UNITS	Material Cost		Conversion
				% Completion	Units	% Completion	Units
Units completed from Beg. WIP			600	0%	0	50%	300
Units started and completed			18000	100%	18,000	100%	18,000
Ending Work in Process			1000	100%	1,000	30%	300
Total Equivalent units			19600		19,000		18,600
COST PER EQUIVALENT UNIT:
				Material		Conversion
Total cost added during the year				92,150		39,060
Equivalent Units				19,000		18,600
Cost per Equivalent unit				4.85		2.1
Cost assigned to production:
				Material	Conversion	Total
Inventory in process Aug1						3540
Cost incurred in August				92150	39060	131210
Ttotal cost accounted for by Roasting deptt.				92150	39060	134750
Cost Allocated to completed and partially completed units:
Inventory in process Aug1						3540
To Complete Inventory in process				0	630	630
Cost of Completed Aug1 WIP						4170
Started and completed units				87300	37800	125100
Transferred to Finished Goods						129270
Inventory in Process Aug31				4850	630	5480
Ttotal cost assigned						134750
Req b:
Change in Material cost pr unit				Decrease	0.05
Change in Conversion cost per unit				Decrease	0.1
Qq2.
UNITS TO BE ACCOUNTED FOR:
Equivalent Units:
			UNITS	Material Cost		Conversion
				% Completion	Units	% Completion	Units
Units completed from Beg. WIP			760	0%	0	30%	228
Units started and completed			15240	100%	15,240	100%	15,240
Transferred to Packing deptt			16000		15,240		15,468
Ending Work in Process			840	100%	840	70%	588
Total Equivalent units			16840		16,080		16,056