Question

Cost of Production Report

The debits to Work in Process—Roasting Department for MorningBrew Coffee Company for August, together with informationconcerning production, are as follows:

Work in process, August 1, 600 pounds, 50%completed				$3,450*
	*Direct materials (600 X $4.8)	$2,880
	Conversion (600 X 50% X $1.9)	$570
		$3,450
Coffee beans added during August, 19,000pounds				90,250
Conversion costs during August				37,800
Work in process, August 31, 1,000 pounds, 60%completed				?
Goods finished during August, 18,600 pounds				?

All direct materials are placed in process at the beginning ofproduction.

a. Prepare a cost of production report,presenting the following computations:

Direct materials and conversion equivalent units of productionfor August.

Direct materials and conversion costs per equivalent unit forAugust.

Cost of goods finished during August.

Cost of work in process at August 31.

If an amount is zero, enter in "0". For the cost per equivalentunit, round your answer to two decimal places.

Morning Brew Coffee Company
Costof Production Report-Roasting Department
Forthe Month Ended August 31
UnitInformation
Units charged toproduction:
Inventory in process, August1
Received from materialsstoreroom
Total units accounted for bythe Roasting Department
Units to be assignedcosts:
		Equivalent Units
	Whole Units	Direct Materials (1)	Conversion (1)
Inventory in process, August1
Started and completed inAugust
Transferred to finished goodsin August
Inventory in process, August31
Total units to be assignedcosts
CostInformation
Costs per equivalent unit:
		Direct Materials	Conversion
Total costs for August inRoasting Department		$	$
Total equivalent units
Cost per equivalent unit(2)		$	$
Costs assigned toproduction:
	Direct Materials	Conversion	Total
Inventory in process, August1			$
Costs incurred in August
Total costs accounted for bythe Roasting Department			$
Costs allocated to completedand partially completed units:
Inventory in process, August 1balance			$
To complete inventory inprocess, August 1	$	$
Cost of completed August 1 workin process			$
Started and completed inAugust
Transferred to finished goodsin August (3)			$
Inventory in process, August 31(4)
Total costs assigned by theRoasting Department			$

Feedback

a. How much more (percentage amount) needed to be done to thebeginning work in process units to make the units complete totransfer to the next department? Did these units require morematerial cost or more conversion cost? How much, in terms of cost,had been done to these units in the prior period? In order forunits to be transferred to the next department, the units have tobe complete with respect to both materials and conversion. When arematerials added in the process? How complete are the units inending inventory with respect to materials? How complete are theunits in ending inventory with respect to conversion? Materials andconversion cost needs to be allocated among the equivalent units.Are the number of equivalent units the same for materials andconversion?

b. Compute and evaluate the change in cost perequivalent unit for direct materials and conversion from theprevious month (July). If required, round your answers to thenearest cent.

	Increase or Decrease	Amount
Change in direct materials cost per equivalent unit	Decrease	$
Change in conversion cost per equivalent unit	Increase	$