Hana 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., 4,500 units, 3/5 completed |
|
|
16,830 |
|
|
|
31 |
Direct materials, 202,500 units |
668,250 |
|
|
685,080 |
|
|
|
31 |
Direct labor |
129,200 |
|
|
814,280 |
|
|
|
31 |
Factory overhead |
32,320 |
|
|
846,600 |
|
|
|
31 |
Goods transferred, 203,000 units |
|
? |
|
|
|
|
31 |
Bal., ? units, 2/5 completed |
|
|
? |
|
|
Required:
1. Prepare a cost of production report, and
identify the missing amounts for Work in Process—Roasting
Department. If an amount is zero, enter "0". When computing cost
per equivalent units, round to two decimal places.
| Hana Coffee Company |
| Cost of Production Report-Roasting Department |
| For the Month Ended July 31 |
| Unit Information |
| Units charged to production: |
| Inventory in process, July 1 |
|
| Received from materials storeroom |
|
| Total units accounted for by the Roasting
Department |
|
| Units to be assigned costs: |
|
|
Equivalent Units |
|
Whole Units |
Direct Materials |
Conversion |
| Inventory in process, July 1 |
|
|
|
| Started and completed in July |
|
|
|
| Transferred to Packing Department in July |
|
|
|
| Inventory in process, July 31 |
|
|
|
| Total units to be assigned costs |
|
|
|
| Cost Information |
| Cost per equivalent unit: |
|
Direct Materials |
Conversion |
| Total costs for July in Roasting Department |
$ |
$ |
| Total equivalent units |
|
|
| Cost per equivalent unit |
$ |
$ |
| Costs assigned to production: |
|
Direct Materials |
Conversion |
Total |
| Inventory in process, July 1 |
|
|
$ |
| Costs incurred in July |
|
|
|
| Total costs accounted for by the Roasting
Department |
|
|
$ |
| Costs allocated to completed and partially
completed units: |
|
|
|
| Inventory in process, July 1 balance |
|
|
$ |
| To complete inventory in process, July 1 |
$ |
$ |
|
| Cost of completed July 1 work in process |
|
|
$ |
| Started and completed in July |
|
|
|
| Transferred to Molding Department in July |
|
|
$ |
| Inventory in process, July 31 |
|
|
|
| Total costs assigned by the Roasting
Department |
|
|
$ |
2. Assuming that the July 1 work in process
inventory includes $14,400 of direct materials, determine the
increase or decrease in the cost per equivalent unit for direct
materials and conversion between February and July. If required,
round your answers to the nearest cent.
|
Increase or Decrease |
Amount |
| Change in direct materials cost per equivalent unit |
|
$ |
| Change in conversion cost per equivalent unit |
|
$ |
