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, 500 pounds, 50% completed *Direct materials (500 X $3.5) Conversion (500 X 50% X $1.4) $1,750 350 $2,100 Coffee beans added during August, 16,000 pounds Conversion costs during August Work in process, August 31, 800 pounds, 70% completed Goods finished during August, 15,700 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. Momine D G $2,100* 55,200 24,015 ? ? If an amount is zero, enter in "0". For the cost per equivalent unit, round your answer to two decimal places.
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, 500 pounds, 50% completed *Direct materials (500 X $3.5) Conversion (500 X 50% X $1.4) $1,750 350 $2,100 Coffee beans added during August, 16,000 pounds Conversion costs during August Work in process, August 31, 800 pounds, 70% completed Goods finished during August, 15,700 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. Momine D G $2,100* 55,200 24,015 ? ? If an amount is zero, enter in "0". For the cost per equivalent unit, round your answer to two decimal places.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Concept explainers
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.
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Transcribed Image Text:Units charged to production:
Inventory in process, August 1
Received from materials storeroom
Total units accounted for by the Roasting Department
Units to be assigned costs:
Inventory in process, August 1
Started and completed in August
Transferred to finished goods in August
Inventory in process, August 31
Total units to be assigned costs
Cost per equivalent unit:
Total costs for August in Roasting Department
Total equivalent units
Cost per equivalent unit (2)
Costs assigned to production:
Morning Brew Coffee Company
Cost of Production Report-Roasting Department
For the Month Ended August 31
Unit Information
Inventory in process, August 1
Costs incurred in August
Total costs accounted for by the Roasting Department
Costs allocated to completed and partially completed
units:
Inventory in process, August 1 balance
To complete inventory in process, August 1
Cost of completed August 1 work in process
Started and completed in August
Transferred to finished goods in August (3)
Inventory in process, August 31 (4)
Total costs assigned by the Roasting Department
Change in direct materials cost per equivalent unit
Change in conversion cost per equivalent unit
Whole Units
Equivalent Units
Cost Information
Direct Materials
Direct Materials
Direct Materials (1)
Conversion
Conversion
Increase or Decrease
$
b. Compute and evaluate the change in cost per equivalent unit for direct materials and conversion from the previous month (July). If required, round your
answers to the nearest cent.
Total
Amount
Conversion (1)
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, 500 pounds, 50% completed
*Direct materials (500 X $3.5)
Conversion (500 X 50% X $1.4)
$1,750
350
$2,100
Coffee beans added during August, 16,000 pounds
Conversion costs during August
Work in process, August 31, 800 pounds, 70% completed
Goods finished during August, 15,700 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.
$2,100*
55,200
24,015
?
?
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
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