Cost of Production Report

Cost of Production Report

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., 30,000 units, 10% completed			121,800
	31	Direct materials, 155,000 units	620,000			741,800
	31	Direct labor	90,000			831,800
	31	Factory overhead	33,272			865,072
	31	Goods transferred, 149,000 units		?
	31	Bal., ? units, 45% completed			?

Required:

Question Content Area

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 the nearest cent.

2.  Assuming that the July 1 work in process inventory includes $119,400 of direct materials, determine the increase or decrease in the cost per equivalent unit for direct materials and conversion between June and July. If required, round your answers to two decimal places.