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Cost of Production Report

The debits to Work in ProcessRoasting Department for Morning Brew Coffee Company for August, together with information concerning production, are as follows:

Line Item Description	Amount	Amount
Work in process, August 1, 800 pounds, 60% completed		$3,472*
*Direct materials (800 $3.50)	$2,800
Conversion (800 60% $1.40)	672
Total	$3,472
Coffee beans added during August, 25,000 pounds		86,250
Conversion costs during August		37,395
Work in process, August 31, 1,300 pounds, 70% completed		?
Goods finished during August, 24,500 pounds		?

All direct materials are placed in process at the beginning of production.

This information has been collected in the Microsoft Excel Online file. Open the spreadsheet, perform the required analysis, and input your answers in the questions below.

Open spreadsheet

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

If an amount is zero, enter in "0". For the cost per equivalent unit, round your answer to the nearest cent.

Units	Whole Units	Equivalent Units Direct Materials (1)	Equivalent Units Conversion (1)
Units charged to production:
Inventory in process, August 1	fill in the blank 2
Received from materials storeroom	fill in the blank 3
Total units accounted for by the Roasting Department	fill in the blank 4
Units to be assigned costs:
Inventory in process, August 1	fill in the blank 5	fill in the blank 6	fill in the blank 7
Started and completed in August	fill in the blank 8	fill in the blank 9	fill in the blank 10
Transferred to finished goods in August	fill in the blank 11	fill in the blank 12	fill in the blank 13
Inventory in process, August 31	fill in the blank 14	fill in the blank 15	fill in the blank 16
Total units to be assigned costs	fill in the blank 17	fill in the blank 18	fill in the blank 19

Costs	Direct Materials	Conversion	Total Costs
Cost per equivalent unit:
Total costs for August in Roasting Department	$fill in the blank 20	$fill in the blank 21
Total equivalent units	fill in the blank 22	fill in the blank 23
Cost per equivalent unit (2)	$fill in the blank 24	$fill in the blank 25
Costs assigned to production:
Inventory in process, August 1			$fill in the blank 26
Costs incurred in August			fill in the blank 27
Total costs accounted for by the Roasting Department			$fill in the blank 28
Costs allocated to completed and partially completed units:
Inventory in process, August 1 balance			$fill in the blank 29
To complete inventory in process, August 1	$fill in the blank 30	$fill in the blank 31	fill in the blank 32
Cost of completed August 1 work in process			$fill in the blank 33
Started and completed in August	fill in the blank 34	fill in the blank 35	fill in the blank 36
Transferred to finished goods in August (3)			$fill in the blank 37
Inventory in process, August 31 (4)	fill in the blank 38	fill in the blank 39	fill in the blank 40
Total costs assigned by the Roasting Department			$fill in the blank 41

b. Compute and evaluate the change in cost per equivalent unit for direct materials and conversion from the previous month (July). If required, round your answers to two decimal places.

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