Mochaccino Express 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., 63,000 units, 90% completed 344,295 31 Direct materials, 324,000 units 1,328,400 1,672,695 31 Direct labor 325,200 1,997,895 31 Factory overhead 120,300 2,118,195 31 Goods transferred, 313,000 units ? 31 Bal., ? units, 55% completed ? Required: Question Content Area 1. Prepare a cost of production report and identify the missing amounts for Work in Process—Roasting Department. If an amount box does not require an entry, leave it blank. When computing cost per equi
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.
Mochaccino Express 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., 63,000 units, 90% completed | 344,295 | |||||
| 31 | Direct materials, 324,000 units | 1,328,400 | 1,672,695 | |||||
| 31 | Direct labor | 325,200 | 1,997,895 | |||||
| 31 | Factory |
120,300 | 2,118,195 | |||||
| 31 | Goods transferred, 313,000 units | ? | ||||||
| 31 | Bal., ? units, 55% completed | ? |
Required:
Question Content Area
1. Prepare a cost of production report and identify the missing amounts for Work in Process—Roasting Department. If an amount box does not require an entry, leave it blank. When computing cost per equivalent units, round to the nearest cent.
| Units charged to production: | Number of Units |
|---|---|
| Inventory in process, July 1 | fill in the blank f08e1802905c041_1 |
| Received from materials storeroom | fill in the blank f08e1802905c041_2 |
| Total units accounted for by the Roasting Department | fill in the blank f08e1802905c041_3 |
| Units to be assigned costs: | Equivalent Units | ||
|---|---|---|---|
| Whole Units |
Direct Materials |
Conversion |
|
| Inventory in process, July 1 | fill in the blank f08e1802905c041_4 | fill in the blank f08e1802905c041_5 | fill in the blank f08e1802905c041_6 |
| Started and completed in July | fill in the blank f08e1802905c041_7 | fill in the blank f08e1802905c041_8 | fill in the blank f08e1802905c041_9 |
| Transferred to Packing Department in July | fill in the blank f08e1802905c041_10 | fill in the blank f08e1802905c041_11 | fill in the blank f08e1802905c041_12 |
| Inventory in process, July 31 | fill in the blank f08e1802905c041_13 | fill in the blank f08e1802905c041_14 | fill in the blank f08e1802905c041_15 |
| Total units to be assigned costs | fill in the blank f08e1802905c041_16 | fill in the blank f08e1802905c041_17 | fill in the blank f08e1802905c041_18 |
| Costs per equivalent unit: | Direct Materials |
Conversion |
|
|---|---|---|---|
| Total costs for July in Roasting Department | $fill in the blank f08e1802905c041_19 | $fill in the blank f08e1802905c041_20 | |
| Total equivalent units | fill in the blank f08e1802905c041_21 | fill in the blank f08e1802905c041_22 | |
| Cost per equivalent unit | $fill in the blank f08e1802905c041_23 | $fill in the blank f08e1802905c041_24 | |
| Costs charged to production: | |||
| Direct Materials |
Conversion |
Total |
|
| Inventory in process, July 1 | $fill in the blank f08e1802905c041_25 | ||
| Costs incurred in July | fill in the blank f08e1802905c041_26 | ||
| Total costs accounted for by the Roasting Department | $fill in the blank f08e1802905c041_27 | ||
| Cost allocated to completed and partially completed units: | |||
| Inventory in process, July 1 balance | $fill in the blank f08e1802905c041_28 | ||
| To complete inventory in process, July 1 | $fill in the blank f08e1802905c041_29 | $fill in the blank f08e1802905c041_30 | fill in the blank f08e1802905c041_31 |
| Cost of completed July 1 work in process | $fill in the blank f08e1802905c041_32 | ||
| Started and completed in July | fill in the blank f08e1802905c041_33 | fill in the blank f08e1802905c041_34 | fill in the blank f08e1802905c041_35 |
| Transferred to Packing Department in July | $fill in the blank f08e1802905c041_36 | ||
| Inventory in process, July 31 | fill in the blank f08e1802905c041_37 | fill in the blank f08e1802905c041_38 | fill in the blank f08e1802905c041_39 |
| Total costs assigned by the Roasting Department | $fill in the blank f08e1802905c041_40 |
Question Content Area
2. Assuming that the July 1 work in process inventory includes $256,410 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 two decimal places.
| Increase or Decrease | Amount | |
| Change in direct materials cost per equivalent unit |
|
$fill in the blank a38060fd6fb0fbf_2 |
| Change in conversion cost per equivalent unit |
|
$fill in the blank a38060fd6fb0fbf_4 |
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