Cost of Production Report: Average Cost MethodSunrise 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 DepartmentACCOUNT NO.DateItemDebitCreditBalanceDebitCreditDec.1Bal., 10,500 units, 75% completed   21,000   31Direct materials, 210,400 units246,800  267,800   31Direct labor135,700  403,500   31Factory overhead168,630  572,130   31Goods transferred, 208,900 units  ??   31Bal., ? units, 25% completed   ?  Required: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 CompanyCost of Production Report-Roasting DepartmentFor the Month Ended December 31Unit InformationUnits 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 UnitsEquivalent Units of ProductionTransferred to Packing Department in December  Inventory in process, December 31  Total units to be assigned costs  Cost InformationUnit costs: CostsTotal 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$Inventory in process, December 31 Total costs assigned by the Roasting Department$

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Asked Aug 28, 2019
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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.
Date Item Debit Credit Balance
Debit Credit
Dec. 1 Bal., 10,500 units, 75% completed       21,000    
  31 Direct materials, 210,400 units 246,800     267,800    
  31 Direct labor 135,700     403,500    
  31 Factory overhead 168,630     572,130    
  31 Goods transferred, 208,900 units     ? ?    
  31 Bal., ? units, 25% completed       ?    

Required:

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
Unit Information
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    
Cost Information
Unit costs:
  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 $
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Expert Answer

Step 1

Calculate ending work in process inventory whole units as shown below:

Closing direct material balance
Opening balance
Ending work in process
inventory whole units
- Goods transferred balance
10,500units 210,400units -208,900units
12,000 units
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Closing direct material balance Opening balance Ending work in process inventory whole units - Goods transferred balance 10,500units 210,400units -208,900units 12,000 units

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Step 2

Calculate ending work in process inventory units as shown below:

Ending work in process inventory
whole units xPercentage completed
Ending work in process
inventory units
=12,000x25%
3,000
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Ending work in process inventory whole units xPercentage completed Ending work in process inventory units =12,000x25% 3,000

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Step 3

Calculate costs incurred for the month of De...

Direct materials+ Direct labor
Costs incurred during the month of December |
+Factory overhead
$246,800+$135,700 +S168,630
=$551,130
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Direct materials+ Direct labor Costs incurred during the month of December | +Factory overhead $246,800+$135,700 +S168,630 =$551,130

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