Managerial Accounting: Ex20-16 Roasting Department for St. Arbucks Coffee Company

Managerial Accounting

Ex20-16 Cost of Production Report
The debits to Work in Process - Roasting Department for St. Arbucks Coffee Company for July 2012, together with information concerning production, are as follows:
Work in process, July 1, 600 pounds, 20% completed 2,418
*Direct materials (600 x $3.80) 2,280
Conversion (600 x 20% x $1.15) 138

Coffee beans added during July , 23,000 pounds 82,800
Conversion costs during July 27,480
Work in process, July 31, 1,000 pounds, 42% completed ?
Goods finished during July, 22,600 pounds ?

All direct materials are placed in process at the beginning of production. Prepare a cost of production report, presenting the following computations:
a.Direct materials and conversion equivalent units of production for July.
b.Direct materials and conversion costs per equivalent unit for July.
c.Cost of goods finished during July.
d.Cost of work in process at July 31, 2012.
e.Compute and evaluate the change in cost per equivalent unit for direct materials and conversion from the previous month (June). If required, round your answers to two decimal places.
Increase or Decrease Amount
Change in direct materials cost per equivalent unit: $

Change in conversion cost per equivalent unit: $
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