Cost of Production Report: Average Cost Method
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.|
|Dec.||1||Bal., 10,500 units, 75% completed||21,000|
|31||Direct materials, 210,400 units||246,800||267,800|
|31||Goods transferred, 208,900 units||?||?|
|31||Bal., ? units, 25% completed||?|
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 the nearest cent.
|Sunrise Coffee Company|
|Cost of Production Report-Roasting Department|
|For the Month Ended December 31|
|Units to account for during production:|
|Inventory in process, December 1|
|Received from materials storeroom|
|Total units accounted for by the Roasting Department|
|Units to be assigned costs:|
|Whole Units||Equivalent Units of Production|
|Transferred to Packing Department in December|
|Inventory in process, December 31|
|Total units to be assigned costs|
|Total costs for December in Roasting Department||$|
|Total equivalent units|
|Cost per equivalent unit||$|
|Costs charged 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||$|
|Inventory in process, December 31|
|Total costs assigned by the Roasting Department||$|
Calculate ending work in process inventory whole units as shown below:
Calculate ending work in process inventory units as shown below:
Calculate costs incurred for the month of De...
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