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, 1,200 pounds, 50%completed | | | $6,360* |
| *Direct materials (1,200 X $4.4) | $5,280 | | |
| Conversion (1,200 X 50% X $1.8) | $1,080 | | |
| $6,360 | | |
| Coffee beans added during August, 38,000pounds | | | 165,300 |
| Conversion costs during August | | | 71,060 |
| Work in process, August 31, 2,000 pounds, 40%completed | | | ? |
| Goods finished during August, 37,200 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 |
| Cost of Production Report-Roasting Department |
| For the Month Ended August 31 |
| Unit Information |
| Units charged to production: |
| Inventory in process, August 1 | |
| Received from materials storeroom | |
| Total units accounted for by the RoastingDepartment | |
| Units to be assigned costs: |
| | Equivalent Units |
| Whole Units | Direct Materials (1) | Conversion (1) |
| Inventory in process, August 1 | | | |
| Started and completed in August | | | |
| Transferred to finished goods in August | | | |
| Inventory in process, August 31 | | | |
| Total units to be assigned costs | | | |
| Cost Information |
| Costs per equivalent unit: |
| Direct Materials | Conversion |
| Total costs for August in Roasting Department | $ | $ |
| Total equivalent units | | |
| Cost per equivalent unit (2) | $ | $ |
| Costs assigned to production: |
| Direct Materials | Conversion | Total |
| Inventory in process, August 1 | | | $ |
| Costs incurred in August | | | |
| Total costs accounted for by the RoastingDepartment | | | $ |
| Costs allocated to completed and partiallycompleted units: | | | |
| Inventory in process, August 1 balance | | | $ |
| To complete inventory in process, August 1 | $ | $ | |
| Cost of completed August 1 work in process | | | $ |
| Started and completed in August | | | |
| Transferred to finished goods in August (3) | | | $ |
| Inventory in process, August 31 (4) | | | |
| Total costs assigned by the RoastingDepartment | | | $ |
| | | |
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 | | $ |
| Change in conversion cost per equivalent unit | |
