Cost of Production Report
The debits to Work in Process—Roasting Department for MorningBrew Coffee Company for August, together with informationconcerning production, are as follows:
| Work in process, August 1, 900 pounds, 20%completed | | | $3,402* |
| *Direct materials (900 X $3.5) | $3,150 | | |
| Conversion (900 X 20% X $1.4) | 252 | | |
| $3,402 | | |
| Coffee beans added during August, 28,000pounds | | | 96,600 |
| Conversion costs during August | | | 42,030 |
| Work in process, August 31, 1,400 pounds, 50%completed | | | ? |
| Goods finished during August, 27,500 pounds | | | ? |
All direct materials are placed in process at the beginning ofproduction.
a. Prepare a cost of production report,presenting the following computations:
- Direct materials and conversion equivalent units of productionfor August.
- Direct materials and conversion costs per equivalent unit forAugust.
- Cost of goods finished during August.
- Cost of work in process at August 31.
If an amount is zero, enter in "0". For the cost per equivalentunit, round your answer to two decimal places.
| Morning Brew Coffee Company |
| Costof Production Report-Roasting Department |
| Forthe Month Ended August 31 |
| UnitInformation |
| Units charged toproduction: |
| Inventory inprocess, August 1 | |
| Received frommaterials storeroom | |
| Total unitsaccounted for by the Roasting Department | |
| Units to be assignedcosts: |
| | EquivalentUnits |
| Whole Units | Direct Materials (1) | Conversion (1) |
| Inventory inprocess, August 1 | | | |
| Started andcompleted in August | | | |
| Transferred tofinished goods in August | | | |
| Inventory inprocess, August 31 | | | |
| Total units tobe assigned costs | | | |
| CostInformation |
| Cost per equivalent unit: |
| Direct Materials | Conversion |
| Total costs forAugust in Roasting Department | $ | $ |
| Totalequivalent units | | |
| Cost perequivalent unit (2) | $ | $ |
| Costs assigned toproduction: |
| Direct Materials | Conversion | Total |
| Inventory inprocess, August 1 | | | $ |
| Costs incurredin August | | | |
| Total costsaccounted for by the Roasting Department | | | $ |
| Costs allocatedto completed and partially completed units: | | | |
| Inventory inprocess, August 1 balance | | | $ |
| To completeinventory in process, August 1 | $ | $ | |
| Cost ofcompleted August 1 work in process | | | $ |
| Started andcompleted in August | | | |
| Transferred tofinished goods in August (3) | | | $ |
| Inventory inprocess, August 31 (4) | | | |
| Total costsassigned by the Roasting Department | | | $ |
| | | |
Feedback
a. How much more (percentage amount) needed to be done to thebeginning work in process units to make the units to complete totransfer to the next department? Did these units require morematerial cost or more conversion cost? How much, in terms of cost,had been done to these units in the prior period? In order forunits to be transferred to the next department, the units have tobe complete with respect to both materials and conversion. When arematerials added in the process? How complete are the units inending inventory with respect to materials? How compete are theunits in ending inventory with respect to conversion? Materials andconversion cost needs to be allocated among the equivalent units.Are the number of equivalent units the same for materials andconversion?
b. Compute and evaluate the change in cost perequivalent unit for direct materials and conversion from theprevious month (July). If required, round your answers to thenearest cent.
| Increase or Decrease | Amount |
| Change in direct materials cost per equivalent unit | Decrease | $ |
| Change in conversion cost per equivalent unit | Increase | $ |
