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 Date Item Debit Credit Debit Credit July 8,056 318,106 310,050 56,800 374,906 1 Bal., 5,300 units, 4/5 completed 31 Direct materials, 238,500 units 31 Direct labor 31 Factory overhead 31 Goods transferred, 239,000 units 31 Bal., 2 units, 2/5 completed 14,204 389,110 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: Inventory in process, July 1 5,300 Received from materials storeroom 238,500 Total units accounted for by the Roasting Department 243,800

Answer 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			5300
Received from materials storeroom			238500
Total units accounted for by the Roasting Department			243800
Units to be assigned costs:
		Equivalent Units
	Whole Units	Direct Materials	Conversion
Inventory in process, July 1	5300	0	1060
Started and completed in July	233700	233700	233700
Transferred to Packing Department in July	239000	233700	234760
Inventory in process, July 31	4800	4800	1920
Total units to be assigned costs	243800	238500	236680
Cost Information
Costs per equivalent unit:
		Direct Materials	Conversion
Total costs for July in Roasting Department		310050	71004
Total equivalent units		238500	236680
Cost per equivalent unit		1.30	0.30
Costs charged to production:
	Direct Materials	Conversion	Total
Inventory in process, July 1			8056
Costs incurred in July			381054
Total costs accounted for by the Roasting Department			389110
Cost allocated to completed and partially completed units:
Inventory in process, July 1 balance			8056
To complete inventory in process, July 1	0	318	318
Cost of completed July 1 work in process			8374
Started and completed in July	303810	70110	373920
Transferred to Packing Department in July			382294
Inventory in process, July 31	6240	576	6816
Total costs assigned by the Roasting Department			389110
2
	Increase or Decrease	Amount
Change in direct materials cost per equivalent unit	Increase	0.10	=1.3-(6360/5300)
Change in conversion cost per equivalent unit	Decrease	0.10	=0.3-((8056-6360)/(5300*4/5))