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Cost of Production Report: Average Cost Method

Cost of Production Report: Average Cost Method

Cost of Production Report: Average Cost Method

Sunrise Coffee Company roasts and packs coffee beans. The process begins in the Roasting Department. From the Roasting Department, the coffee beans are transferred to the Packing Department. The following is a partial work in process account of the Roasting Department at December 31:

ACCOUNT Work in Process—Roasting Department ACCOUNT NO.
Date Item Debit Credit Balance
Debit Credit
Dec. 1 Bal., 10,500 units, 75% completed       21,000    
  31 Direct materials, 210,400 units 246,800     267,800    
  31 Direct labor 135,700     403,500    
  31 Factory overhead 168,630     572,130    
  31 Goods transferred, 208,900 units     ? ?    
  31 Bal., ? units, 25% completed       ?    

Required:

Prepare a cost of production report, using the average cost method, and identify the missing amounts for Work in Process—Roasting Department. If required, round your cost per equivalent unit answer to the nearest cent.

Sunrise Coffee Company
Cost of Production Report-Roasting Department
For the Month Ended December 31
Unit Information
Units to account for during production:
Inventory in process, December 1  
Received from materials storeroom  
Total units accounted for by the Roasting Department  
Units to be assigned costs:
  Whole Units Equivalent Units of Production
Transferred to Packing Department in December    
Inventory in process, December 31    
Total units to be assigned costs    
Cost Information
Unit costs:
  Costs
Total costs for December in Roasting Department $
Total equivalent units  
Cost per equivalent unit $
Costs charged to production:
Inventory in process, December 1 $
Costs incurred in December  
Total costs accounted for by the Roasting Department $
Costs allocated to completed and partially completed units:  
Transferred to Packing Department in December $
Inventory in process, December 31  
Total costs assigned by the Roasting Department $
 
manish jayant 09-Sep-2020

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