Cost of Production Report
Hana Coffee Company roasts and packs coffee beans. The processbegins by placing coffee beans into the Roasting Department. Fromthe Roasting Department, coffee beans are then transferred to thePacking Department. The following is a partial work in processaccount of the Roasting Department at July 31:
| ACCOUNT Work in Process—RoastingDepartment | ACCOUNT NO. |
| Date | Item | Debit | Credit | Balance |
| Debit | Credit |
| July | 1 | Bal., 5,800 units, 3/5 completed | | | 13,688 | | |
| 31 | Direct materials, 261,000 units | 548,100 | | | 561,788 | | |
| 31 | Direct labor | 104,900 | | | 666,688 | | |
| 31 | Factory overhead | 26,180 | | | 692,868 | | |
| 31 | Goods transferred, 261,000 units | | ? | | | |
| 31 | Bal., ? units, 4/5 completed | | | ? | | |
Required:
1. Prepare a cost of production report, andidentify the missing amounts for Work in Process—RoastingDepartment. If an amount is zero, enter "0". When computing costper equivalent units, round to two decimal places.
| HanaCoffee Company |
| Costof Production Report-Roasting Department |
| Forthe Month Ended July 31 |
| UnitInformation |
| Units charged toproduction: |
| Inventory in process, July1 | |
| Received from materialsstoreroom | |
| Total units accounted for bythe Roasting Department | |
| Units to be assignedcosts: |
| | Equivalent Units |
| Whole Units | Direct Materials | Conversion |
| Inventory in process, July1 | | | |
| Started and completed inJuly | | | |
| Transferred to PackingDepartment in July | | | |
| Inventory in process, July31 | | | |
| Total units to be assignedcosts | | | |
| CostInformation |
| Cost per equivalent unit: |
| Direct Materials | Conversion |
| Total costs for July inRoasting Department | $ | $ |
| Total equivalent units | | |
| Cost per equivalent unit | $ | $ |
| Costs assigned toproduction: |
| Direct Materials | Conversion | Total |
| Inventory in process, July1 | | | $ |
| Costs incurred in July | | | |
| Total costs accounted for bythe Roasting Department | | | $ |
| Costs allocated to completedand partially completed units: | | | |
| Inventory in process, July 1balance | | | $ |
| To complete inventory inprocess, July 1 | $ | $ | |
| Cost of completed July 1 workin process | | | $ |
| Started and completed inJuly | | | |
| Transferred to MoldingDepartment in July | | | $ |
| Inventory in process, July31 | | | |
| Total costs assigned by theRoasting Department | | | $ |
Feedback
1. Calculate equivalent units for materials and conversioncosts. Calculate the cost per equivalent unit for materials andconversion costs. Calculate the costs assigned to the beginninginventory, the units started and completed, and the endinginventory.
2. Assuming that the July 1 work in processinventory includes $11,600 of direct materials, determine theincrease or decrease in the cost per equivalent unit for directmaterials 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 | Increase | $ |
| Change in conversion cost per equivalent unit | Decrease | $ |
