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Cost of Production Report
Arabica ghland 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.
Balance
Date
Item
Debit
Credit
Debit
Credit
July
1 Bal., 4,900 units, 2/5 completed
16,464
31 Direct materials, 196,000 units
607,600
624,064
31 Direct labor
126,800
750,864
31 Factory overhead
31,728
782,592
31 Goods transferred, 197,000 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.
Arabica ghland Coffee Company
Cost of Production Report-Roasting Department
For the Month Ended July 31
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Direct
Total
Materials Conversion
Inventory in process, July 1
Costs incurred in July
Total costs accounted for by the Roasting Department
Cost 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
$4
Transferred to Packing Department in July
Inventory in process, July 31
$4
Total costs assigned by the Roasting Department
2. Assuming that the July 1 work in process inventory includes $14,700 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 the nearest cent.
Amount
Increase or Decrease
Change in direct materials cost per equivalent unit
Change in conversion cost per equivalent unit
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