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Cost of Production Report The debits to Work in Process—Roasting Department for Morning Brew Coffee Company...

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, 1,200 pounds, 50% completed $5,460*
*Direct materials (1,200 X $3.8) $4,560
Conversion (1,200 X 50% X $1.5) 900
$5,460
Coffee beans added during August, 38,000 pounds 142,500
Conversion costs during August 60,800
Work in process, August 31, 2,000 pounds, 70% completed ?
Goods finished during August, 37,200 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
Cost 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 $

Feedback

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 Decrease $
Change in conversion cost per equivalent unit Increase $

Solutions

Expert Solution

MORNING BREW COFFEE COMPANY

Cost of Production Report—Roasting Department For
the Month Ended August 31
Units charged to production:
Inventory in process, August 1 1200
Received from materials storeroom 38000
Inventory in process, August 31 39200
Units to be assigned costs:
Equivalent units
Whole units direct materials conversion
Inventory in process, August 1 1200 0

600

(1200*50%)

Started and completed in August

36000

(38000-2000)

36000 36000
Transferred to finished goods in August 37200 36000 36600
Inventory in process, August 31 2000 2000 1400 (2000*70%)
Total units to be assigned costs 39200 38000 38000
Cost information
Cost per equivalent unit:
Direct materials conversion
Total costs for August in Roasting Department 142500 60800
Total equivalent units ÷ 38000 ÷ 38000
Cost per equivalent unit (2) 3.75 1.60
Costs assigned to production:
Direct materials conversion total
Inventory in process, August 1 5460
Costs incurred in August

203300

(142500+60800)

Total costs accounted for by the Roasting Department 208760
Costs allocated to completed and partially completed units:
Inventory in process, August 1 balance 5460
To complete inventory in process, August 1 0

960

(600*1.60)

960
Cost of completed August 1 work in process 6420
Started and completed in August

135000

(36000*3.75)

57600

(36000*1.60)

192600
Transferred to finished goods in August (3) 199020
Inventory in process, August 31 (4)

7500

(2000*3.75)

2240

(1400*1.60)

9740
Total costs assigned by the Roasting Department 208760

Part B

Increase or Decrease
Change in direct materials cost per equivalent unit Decrease

$0.05

(3.75-3.80)

Change in conversion cost per equivalent unit Increase

$0.10

(1.60-1.50)


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