Question

The increases to Work in Process—Roasting Department for Highlands Coffee Company for May as well as information concerning production are as follows:

Work in process, May 1, 3,200 pounds, 50% completed	$44,050
Coffee beans added during May, 197,400 pounds	1,519,670
Conversion costs during May	638,700
Work in process, May 31, 1,900 pounds, 80% completed	_
Goods finished during May, 198,700 pounds	_

Prepare a cost of production report for May, using the average cost method. If required, round cost per equivalent unit answers to the nearest cent.

Highlands Coffee Company
Cost of Production Report-Roasting Department
For the Month Ended May 31
Unit Information
Units charged to production:
Inventory in process, May 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 finished goods in May
Inventory in process, May 31
Total units to be assigned costs
Cost Information
Cost per equivalent unit:
		Costs
Total costs for May in Roasting Department		$
Total equivalent units
Cost per equivalent unit		$
Costs assigned to production:
Inventory in process, May 1		$
Costs incurred in May
Total costs accounted for by the Roasting Department		$
Costs allocated to completed and partially completed units:
Transferred to finished goods in May		$
Inventory in process, May 31
Total costs assigned by the Roasting Department		$

Answer 1

Production Cost report

Highlands coffee company
Cost of Production Report-Roasting Department
For the Month Ended May 31
Unit information
Units charged to production
Inventory in process, May 1		3200
Received from material storeroom		197400
Total units accounted for by the Roasting Department		200600
Units to be assigned cost
	Whole Unit	Equivalent unit
Transferred to finished goods in May	198700	198700
Inventory in process, May 31	1900	1900*80% = 1520
Total Units to be assigned cost	200600	200220
Cost information
Cost per equivalent unit
		Costs
Total costs for May in Roasting Department		2202420
Total equivalent unit		200220
Cost per equivalent unit		11
Cost assigned to production
Inventory in process, May 1		44050
Cost incurred in May		2158370
Total costs accounted for by the Roasting Department		2202420
Costs allocated to completed and partially completed unit
Transferred to finished goods in may (198700*11)		2185700
Inventory in process, May 31		16720
Total costs assigned by the Roasting Department		2202420