Cost of Production Report 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., 6,000 units, 1/5 completed     19,080       31 Direct materials, 270,000 units 837,000     856,080       31 Direct labor 175,100     1,031,180       31 Factory overhead 43,780     1,074,960       31 Goods transferred, 270,000 units   ?         31 Bal., ? units, 4/5 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 The rate used to allocate costs between completed and partially completed production.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 $18,000 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 Decrease Increase $ Change in conversion cost per equivalent unit Decrease Increase $

Question

Cost of Production Report

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., 6,000 units, 1/5 completed     19,080    
  31 Direct materials, 270,000 units 837,000     856,080    
  31 Direct labor 175,100     1,031,180    
  31 Factory overhead 43,780     1,074,960    
  31 Goods transferred, 270,000 units   ?      
  31 Bal., ? units, 4/5 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 The rate used to allocate costs between completed and partially completed production.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 $18,000 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
  • Decrease
  • Increase
$
Change in conversion cost per equivalent unit
  • Decrease
  • Increase
$

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