11111 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, 400 pounds, 30% completed $1,528 * Direct materials (400 X $3.40) $1,360 Conversion (400 X 30% X $1.40) $1,528 Coffee beans added during August, 13,000 pounds 43,550 Conversion costs during August 19,500 Work in process, August 31, 700 pounds, 60% completed Goods finished during August, 12,700 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 If an amount is zero, enter in "O". For the cost per equivalent unit, round your answer to two decimal places. 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. Change in direct materials cost per equivalent unit. (increase *or?* decrease) Amount $__________ Change in conversion cost per equivalent unit . increase *or?* decrease) Amount $__________
11111 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, 400 pounds, 30% completed $1,528 * Direct materials (400 X $3.40) $1,360 Conversion (400 X 30% X $1.40) $1,528 Coffee beans added during August, 13,000 pounds 43,550 Conversion costs during August 19,500 Work in process, August 31, 700 pounds, 60% completed Goods finished during August, 12,700 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 If an amount is zero, enter in "O". For the cost per equivalent unit, round your answer to two decimal places. 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. Change in direct materials cost per equivalent unit. (increase *or?* decrease) Amount $__________ Change in conversion cost per equivalent unit . increase *or?* decrease) Amount $__________
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter3: Process Cost Systems
Section: Chapter Questions
Problem 25E: The following information concerns production in the Forging Department for June. The Forging...
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11111
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, 400 pounds, 30% completed
$1,528
* Direct materials (400 X $3.40)
$1,360
Conversion (400 X 30% X $1.40)
$1,528
Coffee beans added during August, 13,000 pounds
43,550
Conversion costs during August
19,500
Work in process, August 31, 700 pounds, 60% completed
Goods finished during August, 12,700 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
If an amount is zero, enter in "O". For the cost per equivalent unit, round your answer to two decimal places.
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.
Change in direct materials cost per equivalent unit.
(increase *or?* decrease)
Amount $__________
Change in conversion cost per equivalent unit .
increase *or?* decrease)
Amount $__________
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