Question

BOR Cake Pem 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 Pading Department. The following is a partial work in process account of the Roasting Department at ly 311 ACCOUNT Work in Process Roasting Department ACCOUNT NO Date Item Debit Credit Balance Debit Credit July 1 Bal., 6.400 urts, 2/5 completed 18,048 31 Direct materials, 288,000 units 748.300 766,84 31 Direct labor 162.500 929.643 31 Factory overhead 40,732 970,380 31 Goods ferred, 209,000 units 31 Bl. 2 units, 4/5 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 "o". When computing cost per equivalents, round to two decimal places Hana Coffee Company Cost of Production Report Roasting Department For the Month Ended July 31 6.100 Unit Information Units charged to production: Inventory in process 1 Received from materials toreroom Total units accounted for by the Roasting Department Unts to be assigned costs 200.000 294.400 Equivalent Check My Work Previous

Answer 1

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			6400
Received from materials storeroom			288000
Total units accounted for by the Roasting Department			294400
Units to be assigned costs:
		Equivalent Units
	Whole Units	Direct Materials	Conversion
Inventory in process, July 1 (6400 x 3/5)	6400	0	3840
Started and completed in July	282600	282600	282600
Transferred to Packing Department in July	289000	282600	286440
Inventory in process, July 31 (5400 x 4/5)	5400	5400	4320
Total units to be assigned costs	294400	288000	290760
Cost Information
Cost per equivalent unit:
		Direct Materials	Conversion
Total costs for July in Roasting Department		748800	203532
Total equivalent units		288000	290760
Cost per equivalent unit		2.60	0.70
Costs assigned to production:
	Direct Materials	Conversion	Total
Inventory in process, July 1			18048
Costs incurred in July			952332
Total costs accounted for by the Roasting Department			970380
Costs allocated to completed and partially completed units:
Inventory in process, July 1 balance			18048
To complete inventory in process, July 1 (3840 x $0.70)	0	2688	2688
Cost of completed July 1 work in process			20736
Started and completed in July (282600 x $2.60);(282600 x $0.70)	734760	197820	932580
Transferred to Packing Department in July			953316
Inventory in process, July 31 (5400 x $2.60);(4320 x $0.70)	14040	3024	17064
Total costs assigned by the Roasting Department			970380

2.

	Increase or Decrease	Amount
Change in direct materials cost per equivalent unit	Increase	$                                    0.10
Change in conversion cost per equivalent unit	Decrease	$                                    0.10

Working:

	Direct Materials	Conversion
Cost per equivalent unit, July 1	$                               2.50	$                                    0.80
	($16000/6400)	[($18048-$16000)/2560]
Cost per equivalent unit, July 31	$                               2.60	$                                    0.70
(Increase)/Decrease	$                             -0.10	$                                    0.10