Cost of Production Report The debits to Work in ProcessRoast

Cost of Production Report The debits to Work in Process-Roasting Department for Morming Brew Coffee Company for August, together with Information concerning production, are as follows: Work in process, August 1, 400 pounds, 30% completed $1,832 Direct materials (400 x$4.1) Conversion (400 X 30% X $1.6) 1,640 $192 $1,832 Coffee beans added during August, 13,000 pounds Conversion costs during August Work in process, August 31, 700 pounds, 50% completed Goods finished during August, 12,700 pounds All direct materials are placed in process at the beginning of production . Prepare a cost of production report, presenting the following computations 52,650 21,981 1. Direct materials and conversion equlvalent units of production for August 2. Direct materials and conversion costs per equivalent 3 Cost of goods finished during August 4. Cost of work in process at August 31 an amount is zero, enter in \"O\". the cost per equivalent unit, round your answer to two decimal p s. Morning Brew Coffee Company Cost of Production Report-Roasting Department For the Month Ended August 3 Unit Information

Solution

FIFO method Beggining units 400 Transferred out 12,700 Started into production 13000 Ending units 700 13400 13400 Equivalent units Material Conversion Beginning units 400 400 Completion in current period 0% 70% A 0 280 Units started and completed 12300 12300 Completion 100% 100% B 12300 12300 Ending Units 700 700 Completion 100% 50% C 700 350 Total units A+B+C 13000 12930 Cost per equivalent units Per unit cost Cost Total units Per unit cost Material cost 52650 13000 4.05 Conversion cost 21981 12930 1.70 Total 74631 5.75 Cost of goods sold Material convertion cost Beginning work in progress A 1640 192 1832 Beginning inventory completed Completion 0% 70% Per unit cost 4.05 1.70 Units 400 400 Total cost   B 0 476 476 Units started and completed Completion 100% 100% Per unit cost 4.05 1.70 Units 12300 12300 Total cost    C 49815 20910 70725 Total cost A+B+C 51455 21386 73033 Ending work in progress Completion 100% 50% Per unit cost 4.05 1.70 Units 700 700 Total cost     2835 595 3430 Cost per equivalent unit Material Conversion cost For current period 4.05 1.70 For beginning inventory 4.1 1.60 increase (decrease) -0.05 0.100