Cost of Production Report Hana Coffee Company roasts and pac

Cost of Production Report

Hana Coffee Company roasts and packs coffee beans. The process begins by placing coffee beans into the Roasting Department. From the Roasting Department, coffee beans are then transferred to the Packing Department. The following is a partial work in process account of the Roasting Department at July 31:

Required:

1. Prepare a cost of production report, and identify the missing amounts for Work in Process—Roasting Department. If an amount is zero, enter \"0\". When computing cost per equivalent units, round to the nearest cent.

2. Assuming that the July 1 work in process inventory includes $119,400 of direct materials, determine the increase or decrease in the cost per equivalent unit for direct materials and conversion between June and July. If required, round your answers to two decimal places.

ACCOUNT Work in Process—Roasting Department	ACCOUNT NO.
Date	Item	Debit	Credit	Balance
Debit	Credit
July	1	Bal., 30,000 units, 10% completed			121,800
	31	Direct materials, 155,000 units	620,000			741,800
	31	Direct labor	90,000			831,800
	31	Factory overhead	33,272			865,072
	31	Goods transferred, 149,000 units		?
	31	Bal., ? units, 45% completed			?

Solution

Beggining units 30000 Transferred out 1,49,000 Started into production 155000 Ending units 36,000 185000 185000 Equivalent units Material Conversion Beginning units 30000 30000 Completion in current period 0% 90% A 0 27000 Units started and completed 119000 119000 Completion 100% 100% B 119000 119000 Ending Units 36,000 36,000 Completion 100% 45% C 36000 16200 Total units A+B+C 155000 162200 Cost per equivalent units Per unit cost Cost Total units Per unit cost Material cost 620000 155000 4.00 Conversion cost 123272 162200 0.76 Total 743272 4.76 Cost of goods sold Material convertion cost Beginning work in progress A 119400 2400 121800 Beginning inventory completed Completion 0% 90% Per unit cost 4.00 0.76 Units 30000 30000 Total cost   B 0 20520 20520 Units started and completed Completion 100% 100% Per unit cost 4.00 0.76 Units 119000 119000 Total cost    C 476000 90440 566440 Total cost A+B+C 595400 110960 708760 Ending work in progress Completion 100% 45% Per unit cost 4.00 0.76 Units 36,000 36,000 Total cost     144000 12312 156312 Cost per equivalent unit Material Conversion cost For current period 4.00 0.76 For beginning inventory 3.98 0.80 increase (decrease) 0.02 -0.04