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., 7,300 units, 3/5 completed					19,126
	31	Direct materials, 328,500 units	755,550				774,676
	31	Direct labor	158,400				933,076
	31	Factory overhead	39,636				972,712
	31	Goods transferred, 329,000 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 inprocess, July 1
Received frommaterials storeroom
Total unitsaccounted for by the Roasting Department
Units to be assignedcosts:
		EquivalentUnits
	Whole Units	Direct Materials	Conversion
Inventory inprocess, July 1
Started andcompleted in July
Transferred toPacking Department in July
Inventory inprocess, July 31
Total units tobe assigned costs
CostInformation
Cost per equivalent unit:
		Direct Materials	Conversion
Total costs forJuly in Roasting Department		$	$
Totalequivalent units
Cost perequivalent unit		$	$
Costs assigned toproduction:
	Direct Materials	Conversion	Total
Inventory inprocess, July 1			$
Costs incurredin July
Total costsaccounted for by the Roasting Department			$
Costs allocatedto completed and partially completed units:
Inventory inprocess, July 1 balance			$
To completeinventory in process, July 1	$	$
Cost ofcompleted July 1 work in process			$
Started andcompleted in July
Transferred toMolding Department in July			$
Inventory inprocess, July 31
Total costsassigned by the Roasting 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 $16,060 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	$