Cost of Production Report The debits to Work In ProcessRoast

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, 400 pounds, 40% completed $1,856 Direct materials (400 X $4) conversion (400 x 40% x $1.6) $1,600 $256 $1,856 Coffee beans added during August, 13,000 pounds Conversion costs during August work in process, August 31, 700 pounds, 30% completed Goods finlshed during August, 12,700 pounds All direct materials are placed In process at the beginning of production a. Prepare a cost of production report, presenting the following computatlons: 51,350 21,675 1. Direct materials and conversion equivalent units of production for August 2. Direct materials and converslon costs per equivalent unit for August. 3. Cost of goods finlshed during August. 4. Cost of work In process at August 31. If an amount is zero, enter In \"o\". For the cost per equivalent unit, round your answer to two decimal places.

Solution

For the Month Ended August 31, 2014 Unit Information Units charged to production: Inventory in process, August 1 400 Received from materials storeroom 13000 Total units accounted for by the Roasting Department 13400 Units to be assigned costs: Equivalent Units Whole Units Direct Materials (1) Conversion (1) Inventory in process, August 1 400 0 240 (400*60%) Started and completed in August 12300 12300 12300 Transferred to finished goods in August 12700 12300 12540 Inventory in process, August 31 700 700 210 (700*30) Total units to be assigned costs 13400 13000 12750 Cost Information Costs per equivalent unit: Direct Materials Conversion Total costs for August in Roasting Department $51,350 21675 Total equivalent units 13000 12750 Cost per equivalent unit (2) $3.95 $1.70 Costs assigned to production: Direct Materials Conversion Total Inventory in process, August 1 1856 Costs incurred in August 73025 Total costs accounted for by the Roasting Department 74881 Inventory in process, August 1 balance 1856 Costs allocated to completed and partially completed units: Inventory in process, August 1 balance 0 $408.00 408 (1.7*240) To complete inventory in process, August 1 A 2264 Cost of completed August 1 work in process $   Started and completed in August B $48,585.00 $20,910.00 69495 (12300*3.95) (12300*1.7) Transferred to finished goods in August (3) A+B 71759 Inventory in process, August 31 (4) $2,765.00 $357.00 3122 (700*3.95) (210*1.7) Total costs assigned by the Roasting Department 74881 ans 2 Change in direct material cost Decrease 0.05 4-3.95 Change in conversion cost Increase 0.1 (1.7-1.6) If any doubt please comment