Question

The debits to Work in Process --Roasting Department for Morning Brew Coffee Company for August, together with information concerning production, are as follows: $5,208" Work in process, August 1, 1,200 pounds, 60% completed "Direct materials (1,200 X $3.50) Conversion (1,200 X 60% X $1.40) $4,200 1,008 $5,208 131,100 56,220 Coffee beans added during August, 38,000 pounds Conversion costs during August Work in process, August 31, 2,000 pounds, 50% completed Goods finished during August, 37,200 pounds All direct materials are placed in process at the beginning of production a. Prepare a cost of production report, presenting the following computations: 1. Direct materials and conversion equivalent units of production for August 2. Direct materials and conversion costs per equivalent unit for August 3. Cost of goods finished during August 4. Cost of work in process at August 31

Answer 1

		Material	Conversion Costs
Units to account for
Beginning Work in process	1200
Units started	38000
Total Units to account for	39200
Units accounted for
Inventory in Process, Beginning	1200	0	480
Started and completed	36000	36000	36000
Units transferred	37200	36000	36480
Equivalent units in ending WIP	2000	2000	1000
Total units accounted for	39200
Equivalent units of production		38000	37480
	Material	Conversion Costs
Cost added during the production	$       131,100	$             56,220
Equivalent units of production	38000	37480
Cost per Equivalent unit	$              3.45	$                 1.50
	Material	Conversion Costs	Total
Inventory in Process, Beginning	$            4,200	$               1,008	$            5,208
Costs incurred	$       131,100	$             56,220	$       187,320
Total Costs to be accounted for			$       192,528
	Material	Conversion Costs	Total
Costs allocated
Inventory in Process, Beginning	$            4,200	$               1,008	$            5,208
To completed beginning inventory	$                   -	$                   720	$                720
Total Cost of Work in Process	$            4,200	$               1,728	$            5,928
Started and completed	$       124,200	$             54,000	$       178,200
Completed and Transferred	$       128,400	$             55,728	$       184,128
Inventory in Process, Ending	$            6,900	$               1,500	$            8,400
Total Costs accounted for			$       192,528
		Material	Conversion Costs
Units to account for
Beginning Work in process	1200
Units started	38000
Total Units to account for	39200
Units accounted for
Inventory in Process, Beginning	1200	0	480
Started and completed	36000	36000	36000
Units transferred	37200	36000	36480
Equivalent units in ending WIP	2000	2000	1000
Total units accounted for	39200
Equivalent units of production		38000	37480
	Material	Conversion Costs
Cost added during the production	$       131,100	$             56,220
Equivalent units of production	38000	37480
Cost per Equivalent unit	$              3.45	$                 1.50
	Material	Conversion Costs	Total
Inventory in Process, Beginning	$            4,200	$               1,008	$            5,208
Costs incurred	$       131,100	$             56,220	$       187,320
Total Costs to be accounted for			$       192,528
	Material	Conversion Costs	Total
Costs allocated
Inventory in Process, Beginning	$            4,200	$               1,008	$            5,208
To completed beginning inventory	$                   -	$                   720	$                720
Total Cost of Work in Process	$            4,200	$               1,728	$            5,928
Started and completed	$       124,200	$             54,000	$       178,200
Completed and Transferred	$       128,400	$             55,728	$       184,128
Inventory in Process, Ending	$            6,900	$               1,500	$            8,400
Total Costs accounted for			$       192,528

Change in Materials	Decrease	$                 0.05
Change in Conversion	Increase	$                 0.10