Cost of Production Report: Weighted average method The increases to Work in Process-Roasting Department for Highlands Coffee Company for May as well as information concerning production are as follows: Work in process, May 1, 1,150 pounds, 40% completed Coffee beans added during May, 10,900 pounds Conversion costs during May Work in process, May 31, 800 pounds, 80% completed Goods finished during May, 11,250 pounds Prepare a cost of production report for May, using the Weighted average method. Assume that direct materials are placed in process during production. If required, round cost per equivalent unit answers to the nearest cent Highlands Coffee Company Cost of Production Report-Roasting Department For the Month Ended May 31 Unit Information Units charged to production: Inventory in process, May 1 Received from materials storeroom Total units accounted for by the Roasting Department Units to be assigned costs: Transferred to finished goods in May Inventory in process, May 31 Total units to be assigned costs Cost per equivalent unit: Total costs for May in Roasting Department Total equivalent units Cost per equivalent unit Costs assigned to production: Inventory in process, May 1 Costs incurred in May Whole Units Cost Information $1,700 28,600 12,504 Total costs accounted for by the Roasting Department Costs allocated to completed and partially completed units: Transferred to finished goods in May Inventory in process, May 31 Total costs assigned by the Roasting Department Equivalent Units of Production Costs
Cost of Production Report: Weighted average method The increases to Work in Process-Roasting Department for Highlands Coffee Company for May as well as information concerning production are as follows: Work in process, May 1, 1,150 pounds, 40% completed Coffee beans added during May, 10,900 pounds Conversion costs during May Work in process, May 31, 800 pounds, 80% completed Goods finished during May, 11,250 pounds Prepare a cost of production report for May, using the Weighted average method. Assume that direct materials are placed in process during production. If required, round cost per equivalent unit answers to the nearest cent Highlands Coffee Company Cost of Production Report-Roasting Department For the Month Ended May 31 Unit Information Units charged to production: Inventory in process, May 1 Received from materials storeroom Total units accounted for by the Roasting Department Units to be assigned costs: Transferred to finished goods in May Inventory in process, May 31 Total units to be assigned costs Cost per equivalent unit: Total costs for May in Roasting Department Total equivalent units Cost per equivalent unit Costs assigned to production: Inventory in process, May 1 Costs incurred in May Whole Units Cost Information $1,700 28,600 12,504 Total costs accounted for by the Roasting Department Costs allocated to completed and partially completed units: Transferred to finished goods in May Inventory in process, May 31 Total costs assigned by the Roasting Department Equivalent Units of Production Costs
Chapter1: Financial Statements And Business Decisions
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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:Cost of Production Report: Weighted average method
The increases to Work in Process-Roasting Department for Highlands Coffee Company for May as well as information concerning production are as follows:
Work in process, May 1, 1,150 pounds, 40% completed
Coffee beans added during May, 10,900 pounds
Conversion costs during May
Work in process, May 31, 800 pounds, 80% completed
Goods finished during May, 11,250 pounds
Prepare a cost of production report for May, using the Weighted average method. Assume that direct materials are placed in process during production. If required, round cost per equivalent unit answers to the nearest cent.
Highlands Coffee Company
Cost of Production Report-Roasting Department.
For the Month Ended May 31
Units charged to production:
Inventory in process, May 1
Received from materials storeroom
Total units accounted for by the Roasting Department
Whole Units
Units to be assigned costs:
Transferred to finished goods in
May
Inventory in process, May 31
Total units to be assigned costs
Unit Information
Cost per equivalent unit
Costs assigned to production:
Inventory in process, May 1
Costs incurred in May
Cost Information
Cost per equivalent unit:
Total costs for May in Roasting Department
Total equivalent units
Total costs accounted for by the Roasting Department
Costs allocated to completed and partially completed units:
Transferred to finished goods in May
Inventory in process, May 31
Total costs assigned by the Roasting Department
$1,700
28,600
12,504
$
Equivalent Units of
Production
Costs
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