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., 13,700 units, 75% completed				59,869
	31	Direct materials, 237,000 units	587,760			647,629
	31	Direct labor	319,870			967,499
	31	Factory overhead	460,301			1,427,800
	31	Goods transferred, 239,100 units			?	?
	31	Bal., ? units, 25% 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

	unit information
	inventory in process,december 1				13,700
	received from materials storeroom				237,000
	total units accounted for				250,700
					Whole	Equivalent units
					units	of production
	units to be assigned costs
	transferred to packing department				239,100	239,100
	inventory in process,december31				11,600	2900
	total units to be assinged costs				250,700	242,000
	Cost Information
	Unit costs:
					costs
	total costs for december in roasting deptt				1,427,800
	total equivalent units				242,000
	cost per equivalent units				5.9
	Costs charged to production:
	inventory in process,december 1				59,869
	costs incurred in december				1,367,931
	total costs accounted for by roasting deptt				1,427,800
	costs allocated to completed &partially
	transferred to packing deptt in december				1410690
	inventory in process,december 31				17110
	total costs assigned by roasting deptt				1427800