Cost of fP Hana Coffee Company roasts and packs coffee beans

Cost of fP Hana Coffee Company roasts and packs coffee beans. The pracess 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 ACCOUNT Date Item Debit Credit Credit 31 Direct labor 31 Factory overhead 31 Goods transferred, 198,000 units 237,600 47,100 11,772 243,848 290,948 302,720 Required: amounts for Work in Process-Roasting Department. If an amount is zero, enter \"o. When camputing cost per equivelent units, round to of production re two decimal places Hana Coffee Company For the Month Ended July 31 Inventory in process, July 1 from materials storeroom Units O Type here to search 6/18/2018

Solution

Part 1 Hana Coffee Company Cost of Production Report-Roasting Department For the Month Ended July 31 Unit Information Units charged to production: Inventory in process, July 1              4,400 Received from materials storeroom          198,000 Total units accounted for by the Roasting Department          202,400 Units to be assigned costs: Equivalent Units Whole Units Direct Materials Conversion Inventory in process, July 1                4,400 0 880 Started and completed in July            193,600 193600 193600 Transferred to Packing Department in July            198,000 193600 194480 Inventory in process, July 31                4,400                4,400              1,760 Total units to be assigned costs            202,400            198,000          196,240 Cost Information Costs per equivalent unit: Direct Materials Conversion Total costs for July in Roasting Department $        237,600 $        58,872 ÷ Total equivalent units            198,000          196,240 Cost per equivalent unit $              1.20 $            0.30 Costs charged to production: Direct Materials Conversion Total Inventory in process, July 1 $          6,248 Costs incurred in July          296,472 Total costs accounted for by the Roasting Department $      302,720 Cost allocated to completed and partially completed units: Inventory in process, July 1 balance $          6,248 To complete inventory in process, July 1(880 x 0.30) $                 -   $               264                 264 Cost of completed July 1 work in process $          6,512 Started and completed in July (193600 x 1.2; 193600 x 030)            232,320              58,080          290,400 Transferred to Packing Department in July $      296,912 Inventory in process, July 31 (4400 x 1.2; 1760 x 030)                5,280                   528              5,808 Total costs assigned by the Roasting Department $      302,720 Part 2 July 1, work in process $                  6,248 Less: direct materials                      4,840 Conversion costs                      1,408 Conversion cost equivalent units: Units in process                      4,400 Percent complete x 80% Equivalent Units                      3,520 Direct Materials Conversion March costs per equivalent unit (from part 1) $1.20 $0.30 February costs per equivalent unit Total costs in work in process, July 1 4840 1408 Total equivalent units 4400 3520 Cost per equivalent unit $1.10 $0.40 Increase(Decrease) $0.10 ($0.10)