Accounting
27th Edition
ISBN: 9781337272094
Author: WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher: Cengage Learning,
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Textbook Question
Chapter 20, Problem 20.16EX
Cost of production report
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, 700 pounds, 20% completed | $ 3,479* | |
*Direct materials {700 × $4.70} | $3,290 | |
Conversion {700 × $20% > × $ 1 35} | 189 | |
$3,479 | ||
Coffee beans added during August, 14,300 pounds | 65,780 | |
Conversion costs during August | 21,942 | |
Work in process, August 31,400 pounds, 42% completed | ? | |
Goods finished during August 14,600 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
b. Compute and evaluate the change in cost per equivalent unit for direct materials and conversion from the previous month (July).
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Chapter 20 Solutions
Accounting
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