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., 16,200 units, 75% completed				75,492
	31	Direct materials, 280,300 units	742,795			818,287
	31	Direct labor	403,628			1,221,915
	31	Factory overhead	580,830			1,802,745
	31	Goods transferred, 282,700 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 charged to 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
Cost per equivalent unit:
		Costs
Total costs for December in Roasting Department		$
Total equivalent units
Cost per equivalent unit		$
Costs assigned 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 charged to production:
Inventory in process, December 1		16200
Received from materials storeroom		280300
Total units accounted for by the Roasting Department		296500
Units to be assigned costs:
	Whole Units	Equivalent Units of Production
Transferred to Packing Department in December	282700	282700
Inventory in process, December 31	13800	3450
Total units to be assigned costs	296500	286150
Cost Information
Cost per equivalent unit:
		Costs
Total costs for December in Roasting Department		1802745
Total equivalent units		286150
Cost per equivalent unit		6.3
Costs assigned to production:
Inventory in process, December 1		75492
Costs incurred in December		1727253
Total costs accounted for by the Roasting Department		1802745
Costs allocated to completed and partially completed units:
Transferred to Packing Department in December		1781010	=282700*6.3
Inventory in process, December 31		21735	=3450*6.3
Total costs assigned by the Roasting Department		1802745