Question

cost of production report

lui 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 march 31:

account work in process-roasting department
account no.

date item debit credit balance debit balance credit
march 1 bal., 25,000 units, 10% completed 21,250
31 direct materials, 600,000 units 450,000 471,250
31 direct labor 244,600 715,850
31 factory overhead 415,820 1,131,670
31 goods transferred, 605,000 units ?
31 bal., ? units, 45% 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 unit, round to the nearest cent.

lui coffee company
cost of production report-roasting department
for the month ended march 31

units whole units equivalent units direct materials equivalent units conversion
units charged to production:

Explanation:

Determine physical unit flow

Using the Process Costing knowledge point

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Calculate equivalent units of production

Using the Equivalent Units and FIFO Method knowledge points

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Calculate cost per equivalent unit

Using the FIFO Method knowledge point

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Assign costs to units transferred out and ending WIP

Using the FIFO Method knowledge point

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Verify work in process account balances

Using the Process Costing knowledge point

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Answer:

1. Cost of Production Report — Roasting Department (FIFO Method)

Unit Information

• Units charged to production:
• Beginning Work in Process (March 1): 25,000 units
• Units started during March: 600,000 units
• Total units to account for: 625,000 units
• Units accounted for:
• Units transferred out: 605,000 units
• From beginning Work in Process: 25,000 units
• Started and completed: 580,000 units
• Ending Work in Process (March 31): 20,000 units (45% completed)
• Total units accounted for: 625,000 units

Equivalent Units of Production (EUP)

• Direct Materials:
• To complete beginning WIP: 0 units
• Started and completed: 580,000 units
• Ending WIP: 20,000 units
• Total EUP for Direct Materials: 600,000 units
• Conversion:
• To complete beginning WIP: 22,500 units
• Started and completed: 580,000 units
• Ending WIP: 9,000 units
• Total EUP for Conversion: 611,500 units

Cost per Equivalent Unit

• Direct Materials: \(\$0.75\) per unit
• Conversion: \(\$1.08\) per unit

Cost Assignment

• Cost of units transferred out:
• Beginning WIP (March 1 balance): \(\$21,250\)
• Cost to complete beginning WIP: \(\$24,300\)
• Cost of units started and completed: \(\$1,061,400\)
• Total cost of goods transferred out: \(\$1,106,950\)
• Ending Work in Process (March 31):
• Direct Materials: \(\$15,000\)
• Conversion: \(\$9,720\)
• Total ending WIP: \(\$24,720\)

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2. Missing Amounts for Work in Process Account

• March 31 Goods transferred, 605,000 units (Credit): \(\$1,106,950\)
• March 31 Balance (Debit): \(\$24,720\)