Cost of Production Report: Weighted average method Sunrise Coffee Company roasts and packs coffee beans. The process begins in the Roasting Department. From the Roasting Department, the coffee beans are transferred to the Packing Department. The following is a partial work in process account of the Roasting Department at December 31: ACCOUNT Work in Process-Roasting Department ACCOUNT NO. Date Item Debit Credit Balance Debit Credit Dec. 1 Bal., 12,700 units, 40% completed 56,388 31 Direct materials, 219,700 units 553,644 610,032 31 Direct labor 318,934 928,966 31 Factory overhead 458,954 1,387,920 31 Goods transferred, 221,600 units ? ? 31 Bal., ? units, 90% completed ? Required: Prepare a cost of production report, using the weighted average method, and identify the missing amounts for Work in Process—Roasting Department. Assume that direct materials are placed in process during production. If required, round your cost per equivalent unit answer 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: Weighted average method
Sunrise Coffee Company roasts and packs coffee beans. The process begins in the Roasting Department. From the Roasting Department, the coffee beans are transferred to the Packing Department. The following is a partial work in process account of the Roasting Department at December 31:
| ACCOUNT Work in Process-Roasting Department | ACCOUNT NO. | |||||||
| Date | Item | Debit | Credit | Balance | ||||
| Debit | Credit | |||||||
| Dec. | 1 | Bal., 12,700 units, 40% completed | 56,388 | |||||
| 31 | Direct materials, 219,700 units | 553,644 | 610,032 | |||||
| 31 | Direct labor | 318,934 | 928,966 | |||||
| 31 | Factory |
458,954 | 1,387,920 | |||||
| 31 | Goods transferred, 221,600 units | ? | ? | |||||
| 31 | Bal., ? units, 90% completed | ? |
Required:
Prepare a cost of production report, using the weighted average method, and identify the missing amounts for Work in Process—Roasting Department. Assume that direct materials are placed in process during production. If required, round your cost per equivalent unit answer to two decimal places.
| Sunrise Coffee Company | ||
| Cost of Production Report-Roasting Department | ||
| For the Month Ended December 31 | ||
| Unit Information | ||
| Units charged to production: | ||
| Inventory in process, December 1 | fill in the blank 1 | |
| Received from materials storeroom | fill in the blank 2 | |
| Total units accounted for by the Roasting Department | fill in the blank 3 | |
| Units to be assigned costs: | ||
| Whole Units | Equivalent Units of Production | |
| Transferred to Packing Department in December | fill in the blank 4 | fill in the blank 5 |
| Inventory in process, December 31 | fill in the blank 6 | fill in the blank 7 |
| Total units to be assigned costs | fill in the blank 8 | fill in the blank 9 |
| Cost Information | ||
| Cost per equivalent unit: | ||
| Costs | ||
| Total costs for December in Roasting Department | $fill in the blank 10 | |
| Total equivalent units | fill in the blank 11 | |
| Cost per equivalent unit | $fill in the blank 12 | |
| Costs assigned to production: | ||
| Inventory in process, December 1 | $fill in the blank 13 | |
| Costs incurred in December | fill in the blank 14 | |
| Total costs accounted for by the Roasting Department | $fill in the blank 15 | |
| Costs allocated to completed and partially completed units: | ||
| Transferred to Packing Department in December | $fill in the blank 16 | |
| Inventory in process, December 31 | fill in the blank 17 | |
| Total costs assigned by the Roasting Department | $fill in the blank 18 |
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