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Hana Coffee Company roasts and packs coffee beans. The process begins by placing coffee beans into t

Hana Coffee Company roasts and packs coffee beans. The process begins by placing coffee beans into the Roasting Department. From the Roasting Department, coffee beans are then transferred to the Packing Department. The following is a partial work in process account of the Roasting Department at July 31:

ACCOUNT Work in Process—Roasting Department ACCOUNT NO.
Date Item Debit Credit Balance
Debit Credit
July 1 Bal., 4,600 units, 4/5 completed     11,408    
  31 Direct materials, 207,000 units 434,700     446,108    
  31 Direct labor 82,800     528,908    
  31 Factory overhead 20,700     549,608    
  31 Goods transferred, 207,000 units   ?      
  31 Bal., ? units, 4/5 completed     ?    

Required:

1. Prepare a cost of production report, and identify the missing amounts for Work in Process—Roasting Department. If an amount is zero, enter "0". When computing cost per equivalent units, round to two decimal places.

Hana Coffee Company
Cost of Production Report-Roasting Department
For the Month Ended July 31
Unit Information
Units charged to production:
Inventory in process, July 1  
Received from materials storeroom  
Total units accounted for by the Roasting Department  
Units to be assigned costs:
    Equivalent Units
  Whole Units Direct Materials Conversion
Inventory in process, July 1      
Started and completed in July      
Transferred to Packing Department in July      
Inventory in process, July 31      
Total units to be assigned costs      
Cost Information
Cost per equivalent unit:
  Direct Materials Conversion
Total costs for July in Roasting Department $ $
Total equivalent units    
Cost per equivalent unit $ $
Costs assigned to production:
  Direct Materials Conversion Total
Inventory in process, July 1     $
Costs incurred in July      
Total costs accounted for by the Roasting Department     $
Costs allocated to completed and partially completed units:      
Inventory in process, July 1 balance     $
To complete inventory in process, July 1 $ $  
Cost of completed July 1 work in process     $
Started and completed in July      
Transferred to Molding Department in July     $
Inventory in process, July 31      
Total costs assigned by the Roasting Department     $

2. Assuming that the July 1 work in process inventory includes $9,200 of direct materials, determine the increase or decrease in the cost per equivalent unit for direct materials 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   $
Change in conversion cost per equivalent unit   $

When computing cost per equivalent units,

Apr 03 2020 View more View Less

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