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., 11,500 units, 75% completed				41,745
	31	Direct materials, 199,000 units	409,940			451,685
	31	Direct labor	222,938			674,623
	31	Factory overhead	320,812			995,435
	31	Goods transferred, 200,700 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

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		11500
Received from materials storeroom		199000
Total units accounted for by the Roasting Department		210500
Units to be assigned costs:
	Whole Units	Equivalent Units of Production
Transferred to Packing Department in December	200700	200700
Inventory in process, December 31	9800	2450
Total units to be assigned costs	210500	203150
Cost Information
Unit costs:
		Costs
Total costs for December in Roasting Department		995435
Total equivalent units		203150
Cost per equivalent unit		4.9
Costs charged to production:
Inventory in process, December 1		41745
Costs incurred in December		953690
Total costs accounted for by the Roasting Department		995435
Costs allocated to completed and partially completed units:
Transferred to Packing Department in December		983430
Inventory in process, December 31		12005
Total costs assigned by the Roasting Department		995435