Cost of Production Report The debits to Work in Process - Roasting Department for St. Arbucks Coffee Company for July 2012, together with information concerning production, are as follows: Work in process, July 1, 600 pounds, 20% completed 2,418 *Direct materials (600 x $3.80) 2,280 Conversion (600 x 20% x $1.15) 138 2,418 Coffee beans added during July , 23,000 pounds 82,800 Conversion costs during July 27,480 Work in process, July 31, 1,000 pounds, ? Goods finished during July, 22,600 pounds ? All direct materials are placed in process at the beginning of production. Prepare a cost of production report, presenting the following computations: a.Direct materials and conversion equivalent units of production for July. b.Direct materials and conversion costs per equivalent unit for July. c.Cost of goods finished during July. d.Cost of work in process at July 31, 2012. e.Compute and evaluate the change in cost per equivalent unit for direct materials and conversion from the previous month (June). If required, round your answers to two decimal places. Increase or Decrease Amount Change in direct materials cost per equivalent unit: $ Change in conversion cost per equivalent unit: $
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
The debits to Work in Process - Roasting Department for St. Arbucks Coffee Company for July 2012, together with information concerning production, are as follows:
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Work in process, July 1, 600 pounds, 20% completed
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2,418
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*Direct materials (600 x $3.80)
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2,280
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Conversion (600 x 20% x $1.15)
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138
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2,418
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Coffee beans added during July , 23,000 pounds
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82,800
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Conversion costs during July
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27,480
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Work in process, July 31, 1,000 pounds,
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?
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Goods finished during July, 22,600 pounds
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?
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All direct materials are placed in process at the beginning of production. Prepare a cost of production report, presenting the following computations:
a.Direct materials and conversion equivalent units of production for July.
b.Direct materials and conversion costs per equivalent unit for July.
c.Cost of goods finished during July.
d.Cost of work in process at July 31, 2012.
e.Compute and evaluate the change in cost per equivalent unit for direct materials and conversion from the previous month (June). If required, round your answers to two decimal places.
Increase or Decrease Amount Change in direct materials cost per equivalent unit: $
Change in conversion cost per equivalent unit: $
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