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 partia work in process account of the Roasting Department at December 31: ACCOUNT Work in Process-Roasting Department ACCOUNT NO. Balance Date Item Debit Credit Debit Credit Dec. 1 Bal., 12,700 units, 75% completed 35,687 31 Direct materials, 219,700 units 351,520 387,207 31 Direct labor 190,705 577,912 31 Factory overhead 274,428 852,340 31 Goods transferred, 221,600 units 31 Bal., 2 units, 25% completed Required: Prepare a cost of production report, using the average cost method, and identify the missing amounts for Work in Process-Roasting Department. If required, round your cost per equivalent unit answer to two decimal place 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 Received from materials storeroom Total units accounted for by the Roasting Department Units to be assigned costs: Whole Equivalent Units of Units Production Transferred to Packing Department in December Inventory in process, December 31 Total units to be assigned costs
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 partia work in process account of the Roasting Department at December 31: ACCOUNT Work in Process-Roasting Department ACCOUNT NO. Balance Date Item Debit Credit Debit Credit Dec. 1 Bal., 12,700 units, 75% completed 35,687 31 Direct materials, 219,700 units 351,520 387,207 31 Direct labor 190,705 577,912 31 Factory overhead 274,428 852,340 31 Goods transferred, 221,600 units 31 Bal., 2 units, 25% completed Required: Prepare a cost of production report, using the average cost method, and identify the missing amounts for Work in Process-Roasting Department. If required, round your cost per equivalent unit answer to two decimal place 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 Received from materials storeroom Total units accounted for by the Roasting Department Units to be assigned costs: Whole Equivalent Units of Units Production Transferred to Packing Department in December Inventory in process, December 31 Total units to be assigned costs
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: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.
Balance
Date
Item
Debit
Credit
Debit
Credit
Dec.
1 Bal., 12,700 units, 75% completed
35,687
31 Direct materials, 219,700 units
351,520
387,207
31 Direct labor
190,705
577,912
31 Factory overhead
274,428
852,340
31 Goods transferred, 221,600 units
?
?
31 Bal., ? units, 25% completed
?
Required:
Prepare a cost of production report, using the average cost method, and identify the missing amounts for Work in Process-Roasting Department. 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
Received from materials storeroom
Total units accounted for by the Roasting Department
Units to be assigned costs:
Whole
Equivalent
Units
Units of
Production
Transferred to Packing Department in December
Inventory in process, December 31
Total units to be assigned costs
Transcribed Image Text:Cost Information
Cost per equivalent unit:
Costs
Total costs for December in Roasting Department
Total equivalent units
Cost per equivalent unit
Costs assigned to production:
Inventory in process, December 1
Costs incurred in December
Total costs accounted for by the Roasting Department
Costs allocated to completed and partially completed units:
Transferred to Packing Department in December
Inventory in process, December 31
Total costs assigned by the Roasting Department
%24
%24
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