
Concept explainers
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, 700 pounds, 20% completed | $ 3,479* | |
*Direct materials {700 × $4.70} | $3,290 | |
Conversion {700 × $20% > × $ 1 35} | 189 | |
$3,479 | ||
Coffee beans added during August, 14,300 pounds | 65,780 | |
Conversion costs during August | 21,942 | |
Work in process, August 31,400 pounds, 42% completed | ? | |
Goods finished during August 14,600 pounds |
All direct materials are placed in process at the beginning of production.
a. Prepare a cost of production report, presenting the following computations:
1. Direct materials and conversion equivalent units of production for August
2. Direct materials and conversion costs per equivalent unit for August
3. Cost of goods finished during August
4. Cost of work in process at August 31
b. Compute and evaluate the change in cost per equivalent unit for direct materials and conversion from the previous month (July).

Trending nowThis is a popular solution!

Chapter 20 Solutions
Working Papers, Chapters 18-26 for Warren/Reeve/Duchacâs Accounting, 27E
- What is the variable cost per minute?arrow_forwardsubject: general accountingarrow_forwardZ is a standard item stocked in a company WCU's inventory. Each year the firm, on a random basis, uses about 500 items Z, which costs $25 each. The source of supply is reliable and maintains a constant lead time of five days. Holding costs, which include insurance and cost of capital, amount to $6.25 per unit of average inventory. Every time an order is placed for more item Z, it costs $3. Assume that a year consists of 365 days. What is the economic order quantity? A. 3 B. 46 C. 63 D. 22 Answerarrow_forward
- Z is a standard item stocked in a company WCU's inventory. Each year the firm, on a random basis, uses about 500 items Z, which costs $25 each. The source of supply is reliable and maintains a constant lead time of five days. Holding costs, which include insurance and cost of capital, amount to $6.25 per unit of average inventory. Every time an order is placed for more item Z, it costs $3. Assume that a year consists of 365 days. What is the economic order quantity? A. 3 B. 46 C. 63 D. 22 need answerarrow_forwardWhat is brisol corporations opereting leverage for 2023 ?arrow_forwardWhat is the receivable turnover?arrow_forward
- Managerial AccountingAccountingISBN:9781337912020Author:Carl Warren, Ph.d. Cma William B. TaylerPublisher:South-Western College Pub
