Question

Cost of Production Report: Weighted average method The increases to Work in Process --Roasting Department for Highlands Coffee Company for May as well as information concerning production are as follows: Work in process, May 1, 1,150 pounds, 40% completed $1,700 Coffee beans added during May, 10,900 pounds 28,600 Conversion costs during May 12,504 Work in profess, May 31, 800 pounds, 80% completed Goods finished during May, 11,250 pounds Prepare a cost of production report for May, using the weighted average method. Assume that direct materials are placed in process during production. If required, round cost per equivalent unit answers to the nearest cent. Highlands Coffee Company Cost of Production Report-Roasting Department For the Month Ended May 31 Unit Information Units charged to production: Inventory in process, May 1 Received from materials storeroom Total units accounted for by the Roasting Department Units to be assigned costs: Whole Equivalent linits Units of

Answer 1

Highlands Coffee Company

Cost of production report-Roasting Department

For the month ended May 31

Unit information
Units charged to production
Inventory in process May 1		1150
Received from material storeroom		10900
Total units accounted for by the roasting Department		12050
Units to be assigned costs
	Whole units	Equivalent units of production
Transferred to finished goods in May	11250	11250
Inventory in process, May 31	800	800*80% = 640
Total units to be assigned costs	12050	11890
Cost information
Cost per equivalent units		Costs
Total costs for May in Roasting department		42804
Total equivalent units		11890
Cost per equivalent units		3.6
Cost assigned to production
Inventory in process, May 1		1700
Costs incurred in May		41104
Total costs accounted for by the Roasting Department		42804
Costs allocated to completed and partially completed units
Transferred to finished goods in May		40500
Inventory in process, May 31		2304
Total costs assigned by the Roasting department		42804