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. Date Item Debit Credit Balance Debit Credit July 1 Bal., 4,100 units, 3/5 completed 6,314 31 Direct materials, 184,500 units 258,300 264,614 31 Direct labor 44,200 308,814 31 Factory overhead 10,994 319,808 31 Goods transferred, 185,000 units ? 31 Bal., ? units, 2/5 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.
Process Costing
Process costing is a sort of operation costing which is employed to determine the value of a product at each process or stage of producing process, applicable where goods produced from a series of continuous operations or procedure.
Job Costing
Job costing is adhesive costs of each and every job involved in the production processes. It is an accounting measure. It is a method which determines the cost of specific jobs, which are performed according to the consumer’s specifications. Job costing is possible only in businesses where the production is done as per the customer’s requirement. For example, some customers order to manufacture furniture as per their needs.
ABC Costing
Cost Accounting is a form of managerial accounting that helps the company in assessing the total variable cost so as to compute the cost of production. Cost accounting is generally used by the management so as to ensure better decision-making. In comparison to financial accounting, cost accounting has to follow a set standard ad can be used flexibly by the management as per their needs. The types of Cost Accounting include – Lean Accounting, Standard Costing, Marginal Costing and Activity Based Costing.
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. | |||||||
| Date | Item | Debit | Credit | Balance | ||||
| Debit | Credit | |||||||
| July | 1 | Bal., 4,100 units, 3/5 completed | 6,314 | |||||
| 31 | Direct materials, 184,500 units | 258,300 | 264,614 | |||||
| 31 | Direct labor | 44,200 | 308,814 | |||||
| 31 | Factory overhead | 10,994 | 319,808 | |||||
| 31 | Goods transferred, 185,000 units | ? | ||||||
| 31 | Bal., ? units, 2/5 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 | fill in the blank 4ab6e6fe3fafff5_1 | ||
| Received from materials storeroom | fill in the blank 4ab6e6fe3fafff5_2 | ||
| Total units accounted for by the Roasting Department | fill in the blank 4ab6e6fe3fafff5_3 | ||
| Units to be assigned costs: | |||
| Equivalent Units | |||
| Whole Units | Direct Materials | Conversion | |
| Inventory in process, July 1 | fill in the blank 4ab6e6fe3fafff5_4 | fill in the blank 4ab6e6fe3fafff5_5 | fill in the blank 4ab6e6fe3fafff5_6 |
| Started and completed in July | fill in the blank 4ab6e6fe3fafff5_7 | fill in the blank 4ab6e6fe3fafff5_8 | fill in the blank 4ab6e6fe3fafff5_9 |
| Transferred to Packing Department in July | fill in the blank 4ab6e6fe3fafff5_10 | fill in the blank 4ab6e6fe3fafff5_11 | fill in the blank 4ab6e6fe3fafff5_12 |
| Inventory in process, July 31 | fill in the blank 4ab6e6fe3fafff5_13 | fill in the blank 4ab6e6fe3fafff5_14 | fill in the blank 4ab6e6fe3fafff5_15 |
| Total units to be assigned costs | fill in the blank 4ab6e6fe3fafff5_16 | fill in the blank 4ab6e6fe3fafff5_17 | fill in the blank 4ab6e6fe3fafff5_18 |
| Cost Information | |||
| Cost per equivalent unit: | |||
| Direct Materials | Conversion | ||
| Total costs for July in Roasting Department | $fill in the blank 4ab6e6fe3fafff5_19 | $fill in the blank 4ab6e6fe3fafff5_20 | |
| Total equivalent units | fill in the blank 4ab6e6fe3fafff5_21 | fill in the blank 4ab6e6fe3fafff5_22 | |
| Cost per equivalent unit | $fill in the blank 4ab6e6fe3fafff5_23 | $fill in the blank 4ab6e6fe3fafff5_24 | |
| Costs assigned to production: | |||
| Direct Materials | Conversion | Total | |
| Inventory in process, July 1 | $fill in the blank 4ab6e6fe3fafff5_25 | ||
| Costs incurred in July | fill in the blank 4ab6e6fe3fafff5_26 | ||
| Total costs accounted for by the Roasting Department | $fill in the blank 4ab6e6fe3fafff5_27 | ||
| Costs allocated to completed and partially completed units: | |||
| Inventory in process, July 1 balance | $fill in the blank 4ab6e6fe3fafff5_28 | ||
| To complete inventory in process, July 1 | $fill in the blank 4ab6e6fe3fafff5_29 | $fill in the blank 4ab6e6fe3fafff5_30 | fill in the blank 4ab6e6fe3fafff5_31 |
| Cost of completed July 1 work in process | $fill in the blank 4ab6e6fe3fafff5_32 | ||
| Started and completed in July | fill in the blank 4ab6e6fe3fafff5_33 | fill in the blank 4ab6e6fe3fafff5_34 | fill in the blank 4ab6e6fe3fafff5_35 |
| Transferred to Molding Department in July | $fill in the blank 4ab6e6fe3fafff5_36 | ||
| Inventory in process, July 31 | fill in the blank 4ab6e6fe3fafff5_37 | fill in the blank 4ab6e6fe3fafff5_38 | fill in the blank 4ab6e6fe3fafff5_39 |
| Total costs assigned by the Roasting Department | $fill in the blank 4ab6e6fe3fafff5_40 |
2. Assuming that the July 1 work in process inventory includes $5,330 of direct materials, determine the increase or decrease in the cost per equivalent unit for direct materials and conversion between June and July. If required, round your answers to the nearest cent.
| Increase or Decrease | Amount | |
| Change in direct materials cost per equivalent unit | $fill in the blank fb259a02a06302d_2 | |
| Change in conversion cost per equivalent unit | $fill in the blank fb259a02a06302d_4 |
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