Cost of Production ReportThe 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, 800 pounds, 30% completed $3,400* *Direct materials (800 X $3.80)$3,040 Conversion (800 X 30% X $1.50)360 $3,400 Coffee beans added during August, 25,000 pounds 93,750Conversion costs during August 39,440Work in process, August 31, 1,300 pounds, 30% completed ?Goods finished during August, 24,500 pounds ?All direct materials are placed in process at the beginning of production.a. Prepare a cost of production report, presenting the following computations:Direct materials and conversion equivalent units of production for AugustDirect materials and conversion costs per equivalent unit for AugustCost of goods finished during AugustCost of work in process at August 31If an amount is zero, enter in "0". For the cost per equivalent unit, round your answer to two decimal places.Morning Brew Coffee CompanyCost of Production Report-Roasting DepartmentFor the Month Ended August 31Unit InformationUnits charged to production:Inventory in process, August 1fill in the blank fbdb2001bf9bfe5_1Received from materials storeroomfill in the blank fbdb2001bf9bfe5_2Total units accounted for by the Roasting Departmentfill in the blank fbdb2001bf9bfe5_3Units to be assigned costs: Equivalent Units Whole UnitsDirect Materials (1)Conversion (1)Inventory in process, August 1fill in the blank fbdb2001bf9bfe5_4fill in the blank fbdb2001bf9bfe5_5fill in the blank fbdb2001bf9bfe5_6Started and completed in Augustfill in the blank fbdb2001bf9bfe5_7fill in the blank fbdb2001bf9bfe5_8fill in the blank fbdb2001bf9bfe5_9Transferred to finished goods in Augustfill in the blank fbdb2001bf9bfe5_10fill in the blank fbdb2001bf9bfe5_11fill in the blank fbdb2001bf9bfe5_12Inventory in process, August 31fill in the blank fbdb2001bf9bfe5_13fill in the blank fbdb2001bf9bfe5_14fill in the blank fbdb2001bf9bfe5_15Total units to be assigned costsfill in the blank fbdb2001bf9bfe5_16fill in the blank fbdb2001bf9bfe5_17fill in the blank fbdb2001bf9bfe5_18Cost InformationCost per equivalent unit: Direct MaterialsConversionTotal costs for August in Roasting Department$fill in the blank fbdb2001bf9bfe5_19$fill in the blank fbdb2001bf9bfe5_20Total equivalent unitsfill in the blank fbdb2001bf9bfe5_21fill in the blank fbdb2001bf9bfe5_22Cost per equivalent unit (2)$fill in the blank fbdb2001bf9bfe5_23$fill in the blank fbdb2001bf9bfe5_24Costs assigned to production: Direct MaterialsConversionTotalInventory in process, August 1 $fill in the blank fbdb2001bf9bfe5_25Costs incurred in August fill in the blank fbdb2001bf9bfe5_26Total costs accounted for by the Roasting Department $fill in the blank fbdb2001bf9bfe5_27Costs allocated to completed and partially completed units: Inventory in process, August 1 balance $fill in the blank fbdb2001bf9bfe5_28To complete inventory in process, August 1$fill in the blank fbdb2001bf9bfe5_29$fill in the blank fbdb2001bf9bfe5_30fill in the blank fbdb2001bf9bfe5_31Cost of completed August 1 work in process $fill in the blank fbdb2001bf9bfe5_32Started and completed in Augustfill in the blank fbdb2001bf9bfe5_33fill in the blank fbdb2001bf9bfe5_34fill in the blank fbdb2001bf9bfe5_35Transferred to finished goods in August (3) $fill in the blank fbdb2001bf9bfe5_36Inventory in process, August 31 (4)fill in the blank fbdb2001bf9bfe5_37fill in the blank fbdb2001bf9bfe5_38fill in the blank fbdb2001bf9bfe5_39Total costs assigned by the Roasting Department $fill in the blank fbdb2001bf9bfe5_40 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. Increase or DecreaseAmountChange in direct materials cost per equivalent unit $fill in the blank 19365701100802f_2Change in conversion cost per equivalent unit $fill in the blank 19365701100802f_4

Name: Cost of Production ReportThe debits to Work in Process—Roasting Depart
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Description: Cost of Production ReportThe 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, 800 pounds, 30% completed $3,400* *Dire

Solution: Process Costing is a determination of cost for each process. It is mainly used in a manufacturing entity where a mass production is produced on a continuous basis through multiple processes. Equivalent production units means partially completed units converted into completed Units. Under the FIFO method equivalent units of production are accounted for the current period only. FIFO believes that units introduced first are transferred out first, so out of 24,500 units transferred out units, it consists 800 units from beginning inventory and 23,700 units from the units transferred in during period. This method is different from the very first step because it classifies the units completed into two parts. from beginning units from addition during period. Term started during the period, started and completed during the period and completed during the period, all have different meaning under FIFO method. a) Preparation of Physical flow: Units in the beginning inventory = 800 Units started and completed during the period = 23,700 Units in the ending inventory = 1,300 Total units to account for = 25,800 MORNING BREW COFFEE COMPANY Cost of Production Report—Roasting Department For the Month Ended August 31: Particulars Whole Units Equivalent Units Direct Materials (1) Equivalent Units Conversion (1) Units charged to production: Inventory in process, August 1 800 Received from materials storeroom 25,000 Total units accounted for by the Roasting Department 25,800 Units to be assigned costs: Inventory in process, August 1 (30% completed) 800 - 560* Started and completed in August 23,700 23,700 23,700** Transferred to finished goods in August 24,500 Inventory in process, August 31 (30% completed) 1,300 1,300 390*** Total units to be assigned costs 25,800 25,000 24,650 Notes: * 800 units × (1 – 30%) ** 25,000 units – 800 units *** 1,300 units × 30% Here Equivalent units for material are taken as nil, because material is added in the beginning of the process, and since they were started in the previous accounting period, no work is done with respect to material in the beginning inventory. Conversion cost units are taken as 70% , because 30% was completed last period and only 70% needs to be completed during this period. Computation of unit cost $ per unit. Unit cost per Direct Material: Direct Material Cost (given) = we do not taken in FIFO Add: Additional Cost During the production process = $93,750 Total Cost (A) = $93,750 Equivalent Units (calculated) (B) = 25,000 Cost per Unit ( A/B) = $3.75 Unit cost per Conversion: Conversion Cost (given) = we do not taken in FIFO Add: Additional Cost During the production process (Note) = $39,440 Total Cost (A) = $39,440 Equivalent Units (calculated) (B) = 24,650 Cost per Unit ( A/B) = $1.6 Calculation of Cost of goods transferred to Roasting Dept. at the end of the month and Ending Inventory cost. Cost assignment:- Materials Conversion Cost Cost assigned to the units completed from beginning work in process. - - - 560 1.6 896 Cost assigned to units transferred out 23,700 $3.75 $88,875 23,700 1.6 $37,920 Cost assigned to ending units 1,300 $3.75 $4,875 390 1.6 $624 Total cost assigned During period $93,750 $39,440 Cost from beginning Work in process $3040 $360 Total cost assigned $96,790 $39,800 Reconciliation: Reconciliation Costs to account for: Beginning WIP($3040 +$ 360) $3,400 Additional Costs incurred during the process ($93,750+$39,440) $133,190 Total costs to account for $136,590 Costs accounted for: Cost of completed units Transferred out ($88,875+$37920) $126,795 Ending WIP ($4875 +$ 624) $5,499 Cost from beginning WIP $3,400 Cost assigned to beginning WIP- Conversion $896 Total Costs to account for $136,590 b) Materials from Current Period = $3.75 Less: Beginning Inventory = $3.80 Therefore, Decrease = ($0.05) Conversion from Current Period = $1.6 Less: Beginning Inventory = $1.5 Therefore, Increase = $0.1 The cost per equivalent cost per unit is decreased by 0.05 per pound for direct Materials The cost per equivalent cost per unit is increased by 0.1 per pound for conversion costs. Management may wish to investigate the causes for the increase in the conversion cost.

Answered: Prepare a cost of production report,…

FINANCIAL ACCOUNTING

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ISBN:9781259964947

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Chapter1: Financial Statements And Business Decisions

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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, 800 pounds, 30% completed			$3,400*
	*Direct materials (800 X $3.80)	$3,040
	Conversion (800 X 30% X $1.50)	360
	$3,400
Coffee beans added during August, 25,000 pounds			93,750
Conversion costs during August			39,440
Work in process, August 31, 1,300 pounds, 30% completed			?
Goods finished during August, 24,500 pounds			?

All direct materials are placed in process at the beginning of production.

a. Prepare a cost of production report, presenting the following computations:

Direct materials and conversion equivalent units of production for August
Direct materials and conversion costs per equivalent unit for August
Cost of goods finished during August
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
Unit Information
Units charged to production:
Inventory in process, August 1	fill in the blank fbdb2001bf9bfe5_1
Received from materials storeroom	fill in the blank fbdb2001bf9bfe5_2
Total units accounted for by the Roasting Department	fill in the blank fbdb2001bf9bfe5_3
Units to be assigned costs:
		Equivalent Units
	Whole Units	Direct Materials (1)	Conversion (1)
Inventory in process, August 1	fill in the blank fbdb2001bf9bfe5_4	fill in the blank fbdb2001bf9bfe5_5	fill in the blank fbdb2001bf9bfe5_6
Started and completed in August	fill in the blank fbdb2001bf9bfe5_7	fill in the blank fbdb2001bf9bfe5_8	fill in the blank fbdb2001bf9bfe5_9
Transferred to finished goods in August	fill in the blank fbdb2001bf9bfe5_10	fill in the blank fbdb2001bf9bfe5_11	fill in the blank fbdb2001bf9bfe5_12
Inventory in process, August 31	fill in the blank fbdb2001bf9bfe5_13	fill in the blank fbdb2001bf9bfe5_14	fill in the blank fbdb2001bf9bfe5_15
Total units to be assigned costs	fill in the blank fbdb2001bf9bfe5_16	fill in the blank fbdb2001bf9bfe5_17	fill in the blank fbdb2001bf9bfe5_18
Cost Information
Cost per equivalent unit:
	Direct Materials	Conversion
Total costs for August in Roasting Department	$fill in the blank fbdb2001bf9bfe5_19	$fill in the blank fbdb2001bf9bfe5_20
Total equivalent units	fill in the blank fbdb2001bf9bfe5_21	fill in the blank fbdb2001bf9bfe5_22
Cost per equivalent unit (2)	$fill in the blank fbdb2001bf9bfe5_23	$fill in the blank fbdb2001bf9bfe5_24
Costs assigned to production:
	Direct Materials	Conversion	Total
Inventory in process, August 1			$fill in the blank fbdb2001bf9bfe5_25
Costs incurred in August			fill in the blank fbdb2001bf9bfe5_26
Total costs accounted for by the Roasting Department			$fill in the blank fbdb2001bf9bfe5_27
Costs allocated to completed and partially completed units:
Inventory in process, August 1 balance			$fill in the blank fbdb2001bf9bfe5_28
To complete inventory in process, August 1	$fill in the blank fbdb2001bf9bfe5_29	$fill in the blank fbdb2001bf9bfe5_30	fill in the blank fbdb2001bf9bfe5_31
Cost of completed August 1 work in process			$fill in the blank fbdb2001bf9bfe5_32
Started and completed in August	fill in the blank fbdb2001bf9bfe5_33	fill in the blank fbdb2001bf9bfe5_34	fill in the blank fbdb2001bf9bfe5_35
Transferred to finished goods in August (3)			$fill in the blank fbdb2001bf9bfe5_36
Inventory in process, August 31 (4)	fill in the blank fbdb2001bf9bfe5_37	fill in the blank fbdb2001bf9bfe5_38	fill in the blank fbdb2001bf9bfe5_39
Total costs assigned by the Roasting Department			$fill in the blank fbdb2001bf9bfe5_40

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.

	Increase or Decrease	Amount
Change in direct materials cost per equivalent unit		$fill in the blank 19365701100802f_2
Change in conversion cost per equivalent unit		$fill in the blank 19365701100802f_4

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