Cost of Production Report The debits to Work in Process-Roasting Department for Morning Brew Coffee Company for August, together with information concerning production, are as follows Work in process, August 1, 600 pounds, 30% completed $3,558* *Direct materials (600 X $5.3) $3,180 Conversion (600 X 30% X $2.1) $378 $3,558 Coffee beans added during August, 19,000 pounds 99,750 Conversion costs during August 41,844 Work in process, August 31, 1,000 pounds, 60% completed ? Goods finished during August, 18,600 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 If an amount is zero, enter in "0". For the cost per equivalent unit, round your answer to two decimal places. Morning Brew Coffee Company Cost of Production Report-Roasting Department
Cost of Production Report The debits to Work in Process-Roasting Department for Morning Brew Coffee Company for August, together with information concerning production, are as follows Work in process, August 1, 600 pounds, 30% completed $3,558* *Direct materials (600 X $5.3) $3,180 Conversion (600 X 30% X $2.1) $378 $3,558 Coffee beans added during August, 19,000 pounds 99,750 Conversion costs during August 41,844 Work in process, August 31, 1,000 pounds, 60% completed ? Goods finished during August, 18,600 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 If an amount is zero, enter in "0". For the cost per equivalent unit, round your answer to two decimal places. Morning Brew Coffee Company Cost of Production Report-Roasting Department
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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.
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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.
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The debits to Work in Process—Roasting Department for Morning Brew Coffee Company for August, together with information concerning production, are as follows:
Transcribed Image Text:**Title:** Analyzing Changes in Cost Per Equivalent Unit
**Objective:** Learn how to compute and evaluate changes in the cost per equivalent unit for direct materials and conversion from a previous month.
**Instructions:**
1. **Task Description:**
- Compute and evaluate the change in cost per equivalent unit for direct materials and conversion from the previous month (July). Ensure answers are rounded to the nearest cent.
2. **Assessment Table:**
| Increase or Decrease | Amount |
|----------------------|--------------|
| Change in direct materials cost per equivalent unit | $ ___ |
| Change in conversion cost per equivalent unit | $ ___ |
**Guidelines:**
- Use the dropdowns to indicate whether there is an increase or decrease.
- Input the amount in the respective fields provided.
This task helps in understanding how to analyze financial changes and the impact on production costs, aiding in better budgeting and forecasting.
Transcribed Image Text:**Cost of Production Report**
The debits to Work in Process—Roasting Department for Morning Brew Coffee Company for August, together with information concerning production, are as follows:
- **Work in process, August 1:** 600 pounds, 30% completed
- *Direct materials* (600 x $5.3): $3,180
- *Conversion* (600 x 30% x $2.1): $378
- **Total:** $3,558
- **Coffee beans added during August:** 19,000 pounds
- **Cost:** $99,750
- **Conversion costs during August:**
- **Cost:** $41,844
- **Work in process, August 31:** 1,000 pounds, 60% completed
- **Cost:** ?
- **Goods finished during August:** 18,600 pounds
- **Cost:** ?
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
*If an amount is zero, enter in "0". For the cost per equivalent unit, round your answer to two decimal places.*
---
**Morning Brew Coffee Company**
**Cost of Production Report-Roasting Department**
**For the Month Ended August 31**
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Step 1 Introduction
VIEWStep 2 Statement showing the Units charged to the production
VIEWStep 3 a) 1. Statement showing the Equivalent units of production
VIEWStep 4 a.2 Statement showing the cost per equivalent units
VIEWStep 5 a. 3 Statement Showing the cost of finished goods during august
VIEWStep 6 a.4 Statement showing the cost of work in progress at august 31
VIEWStep 7 b.) Evaluation changes in cost per equivalent unit of material and conversion cost
VIEWStep 8 Working note
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