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ACCOUNT Work in Process-Roasting Department ACCOUNT No. Balance Date Item Debit Credit Debit Credit July 1 Bal., 7,200 units, 4/5 completed 23,328 31 Direct materials, 324,000 units 874,800 898,128 31 Direct labor 179,500 1,077,628 31 Factory overhead 44,836 1,122,464 31 Goods transferred, 325,000 units 31 Bal., 2 units, 1/5 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

ACCOUNT Work in Process-Roasting Department ACCOUNT No. Balance Date Item Debit Credit Debit Credit July 1 Bal., 7,200 units, 4/5 completed 23,328 31 Direct materials, 324,000 units 874,800 898,128 31 Direct labor 179,500 1,077,628 31 Factory overhead 44,836 1,122,464 31 Goods transferred, 325,000 units 31 Bal., 2 units, 1/5 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

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Please help this is all one question that I could not fit in one picture. Please solve I need help. Thank you.

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. ACCOUNT Work in Process-Roasting Department ACCOUNT NO. Balance Date Item Debit Credit Debit Credit July 1 Bal., 7,200 units, 4/5 completed 23,328 31 Direct materials, 324,000 units 874,800 898,128 31 Direct labor 179,500 1,077,628 31 Factory overhead 44,836 1,122,464 31 Goods transferred, 325,000 units 31 Bal., ? units, 1/5 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: Inventory in process, July 1 7,200 Received from materials storeroom Total units accounted for by the Roasting Department Units to be assigned costs: Equivalent Units Whole Direct Conversion Units Materials Inventory in process, July 1 Started and completed in July Transferred to Packing Department in July Inventory in process, July 31 Total units to be assigned costs Cost Information Cost per equivalent unit: Direct Conversion Materials Total costs for July in Roasting Department Total equivalent units Cost per equivalent unit Costs assigned to production: Direct Total Check My Work All work saved.
Transcribed Image Text: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. ACCOUNT Work in Process-Roasting Department ACCOUNT NO. Balance Date Item Debit Credit Debit Credit July 1 Bal., 7,200 units, 4/5 completed 23,328 31 Direct materials, 324,000 units 874,800 898,128 31 Direct labor 179,500 1,077,628 31 Factory overhead 44,836 1,122,464 31 Goods transferred, 325,000 units 31 Bal., ? units, 1/5 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: Inventory in process, July 1 7,200 Received from materials storeroom Total units accounted for by the Roasting Department Units to be assigned costs: Equivalent Units Whole Direct Conversion Units Materials Inventory in process, July 1 Started and completed in July Transferred to Packing Department in July Inventory in process, July 31 Total units to be assigned costs Cost Information Cost per equivalent unit: Direct Conversion Materials Total costs for July in Roasting Department Total equivalent units Cost per equivalent unit Costs assigned to production: Direct Total Check My Work All work saved.
Started and completed in July > Transferred to Packing Department in July Inventory in process, July 31 Total units to be assigned costs Cost Information Cost per equivalent unit: Direct Conversion Materials Total costs for July in Roasting Department $4 $4 Total equivalent units Cost per equivalent unit %$4 Costs assigned to production: Direct Total Materials Conversion Inventory in process, July 1 %24 Costs incurred in July Total costs accounted for by the Roasting Department Costs allocated to completed and partially completed units: Inventory in process, July 1 balance $4 To complete inventory in process, July 1 Cost of completed July 1 work in process 24 Started and completed in July Transferred to Molding Department in July %24 Inventory in process, July 31 Total costs assigned by the Roasting Department Feedback Check My Work 1. Calculate equivalent units for materials and conversion costs. Calculate the cost per equivalent unit for materials and conversion costs. Calculate the costs %24 %24 000 000 %24 %24 %24
Transcribed Image Text:Started and completed in July > Transferred to Packing Department in July Inventory in process, July 31 Total units to be assigned costs Cost Information Cost per equivalent unit: Direct Conversion Materials Total costs for July in Roasting Department $4 $4 Total equivalent units Cost per equivalent unit %$4 Costs assigned to production: Direct Total Materials Conversion Inventory in process, July 1 %24 Costs incurred in July Total costs accounted for by the Roasting Department Costs allocated to completed and partially completed units: Inventory in process, July 1 balance $4 To complete inventory in process, July 1 Cost of completed July 1 work in process 24 Started and completed in July Transferred to Molding Department in July %24 Inventory in process, July 31 Total costs assigned by the Roasting Department Feedback Check My Work 1. Calculate equivalent units for materials and conversion costs. Calculate the cost per equivalent unit for materials and conversion costs. Calculate the costs %24 %24 000 000 %24 %24 %24
Expert Solution
Step 1

Cost of Production Report is shown in the next step.

 

Equivalent units is determined first which is used to calculate the Equivalent Unit Cost.

For Example - if 10 units are 60% complete, it is equivalent to 6 units 100% complete. This can be used for easier calculation. 

 

Equivalent Unit Cost is then used to assign the costs incurred to the goods. It is like a unitary method.

 

 

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