Question

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: ACCOUNT Work in Process-Roasting Department ACCOUNT NO. Balance Item Debit Credit - Debit Credit Date July 1 Bal., 5,900 units, 4/5 completed 31 Direct materials, 265,500 units 849,600 22,538 872,138 1,041,438 1,083,754 31 Direct labor 169,300 42,316 31 Factory overhead 31 Goods transferred, 266,000 units 31 Bal., 2 units, 3/5 completed 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 two decimal places. Hana Coffee Company Cost of Production Report-Roasting Department For the Month Ended July 31 Unit Information Units charged to production:

Answer 1

Answer 1
Hana Coffee Company
Cost of Production Report-Roasting Department
For the Month Ended July 31		Equivalent Units
Unit information	Physical Units	Materials	Conversion
Units charged to production:
Inventory in process July 1	5,900.00
Received from materials storeroom	265,500.00
Total units accounted for by the Roasting Department	271,400.00
Units to be assigned costs:
Inventory in process July 1	5,900.00	-	1,180.00
Started and completed in July	260,100.00	260,100.00	260,100.00
Transferred to Packing Department in July	266,000.00	260,100.00	261,280.00
Inventory in process, July 31	5,400.00	5,400.00	3,240.00
Total units to be assigned costs:	271,400.00	265,500.00	264,520.00
Cost Information				Total
Costs per equivalent unit
Total costs for July in Roasting Department		849,600.00	211,616.00
Total equivalent units		265,500.00	264,520.00
Cost per equivalent unit		3.20	0.80
Costs assigned to production:
Inventory in process, July 1				22,538.00
Costs incurred in July		849,600.00	211,616.00	1,061,216.00
Total costs accounted for by the Roasting Department				1,083,754.00
Costs allocated to completed and partially completed units
Inventory in process, July 1 balance				22,538.00
To complete inventory in process, July 1		-	944.00	944.00
Cost of completed July 1 work in process				23,482.00
Started and completed in July		832,320.00	208,080.00	1,040,400.00
Transferred to Molding Department in July				1,063,882.00
Inventory in process, July 31		17,280.00	2,592.00	19,872.00
Total costs assigned by the Roasting Department				1,083,754.00
Answer 2
Calculation of beginning Costs per equivalent unit
Inventory in process July 1	5,900.00	5,900.00	4,720.00
Costs		18,290.00	4,248.00
Beginning Costs per equivalent unit		3.10	0.90
Costs per equivalent unit for July		3.20	0.80
Change		(0.10)	0.10
		Increase	Decrease

Started and completed in July
Goods finished in July-	266,000.00
Less: Opening work in process	5,900.00
Started and completed in July	260,100.00	B