
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Part A of question, see images.
Part B of question,
Compute and evaluate the change in cost per equivalent unit for direct materials and conversion from the previous month (July). 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 | $ |

Transcribed Image Text:### Daybreak Brew Coffee Company: Production Overview
#### Production Details for August:
- **Work in Process (August 1):**
- 1,200 pounds, 30% completed
- **Direct Materials Cost:** \(1,200 \times \$4.15 = \$4,980\)
- **Conversion Cost:** \(1,200 \times 30\% \times \$2.75 = \$990\)
- **Total Work in Process Cost:** \$5,970
- **Coffee Beans Added:**
- August: 19,800 pounds
- Cost: \$81,180
- **Conversion Costs During August:** \$59,334
- **Work in Process (August 31):**
- 900 pounds, 80% completed
- **Goods Finished in August:** 20,100 pounds
#### Production Report Preparation:
*Tasks:*
1. Compute the equivalent units for direct materials and conversion for August.
2. Calculate the costs per equivalent unit for direct materials and conversion for August.
3. Determine the total cost of goods finished during August.
4. Assess the cost of work in process as of August 31.
*Note: Leave any non-applicable boxes empty. Round all cost per equivalent unit answers to the nearest cent.*
#### Cost of Production Report—Roasting Department
*For the Month Ended August 31*
**Unit Information**
- **Units Charged to Production:**
- Initial Inventory (August 1): 5,790 units (Placeholder for a specific number)
- **Total Units Accounted by Roasting Department:**
**Equivalent Units**
| Category | Whole | Direct Materials | Conversion |
|--------------------|--------------|------------------|------------|
| (1) | | | |
This detailed breakdown ensures accurate cost analysis and production efficiency assessment for the roasting department's operations in August.
![The document displays a production cost report with a focus on inventory and cost allocations for a Roasting Department for the month of August. Below is the transcription of the text and an explanation of the table:
### Production Cost Report
#### Inventory Information:
- **Inventory in process, August 1**
- Whole Units: [Blank]
- Materials: [Blank]
- Conversion: [Blank]
- **Started and completed in August**
- Whole Units: [Blank]
- Materials: [Blank]
- Conversion: [Blank]
- **Transferred to finished goods in August**
- Whole Units: [Blank]
- Materials: [Blank]
- Conversion: [Blank]
- **Inventory in process, August 31**
- Whole Units: [Blank]
- Materials: [Blank]
- Conversion: [Blank]
- **Total units to be assigned costs**
- Whole Units: [Blank]
- Materials: [Blank]
- Conversion: [Blank]
#### Cost Information:
- **Costs per equivalent unit:**
| | Direct Materials | Conversion |
|------------------|------------------|------------|
| **Total costs for August in Roasting Department** | $[Blank] | $[Blank] |
| **Total equivalent units** | [Blank] | [Blank] |
| **Cost per equivalent unit (2)** | $[Blank] | $[Blank] |
- **Costs assigned to production:**
| | Direct Materials | Conversion | Total |
|------------------|------------------|------------|-------|
| **Inventory in process, August 1** | $[Blank] | $[Blank] | [Blank] |
| **Costs incurred in August** | $[Blank] | $[Blank] | [Blank] |
| **Total costs accounted for by the Roasting Department** | | | [Blank] |
Costs allocated to completed and partially completed units:
- **Inventory in process, August 1 balance**
- Direct Materials: [Blank]
- Conversion: [Blank]
- **To complete inventory in process, August 1**
- Direct Materials: $[Blank]
- Conversion: $[Blank]
- **Cost of completed August 1 work in process**
- Direct Materials: [Blank]](https://content.bartleby.com/qna-images/question/1d90078a-cea4-4702-98e6-44e4a5603075/adb2878a-e3e0-4468-bf83-543263706b33/xhra45g_thumbnail.jpeg)
Transcribed Image Text:The document displays a production cost report with a focus on inventory and cost allocations for a Roasting Department for the month of August. Below is the transcription of the text and an explanation of the table:
### Production Cost Report
#### Inventory Information:
- **Inventory in process, August 1**
- Whole Units: [Blank]
- Materials: [Blank]
- Conversion: [Blank]
- **Started and completed in August**
- Whole Units: [Blank]
- Materials: [Blank]
- Conversion: [Blank]
- **Transferred to finished goods in August**
- Whole Units: [Blank]
- Materials: [Blank]
- Conversion: [Blank]
- **Inventory in process, August 31**
- Whole Units: [Blank]
- Materials: [Blank]
- Conversion: [Blank]
- **Total units to be assigned costs**
- Whole Units: [Blank]
- Materials: [Blank]
- Conversion: [Blank]
#### Cost Information:
- **Costs per equivalent unit:**
| | Direct Materials | Conversion |
|------------------|------------------|------------|
| **Total costs for August in Roasting Department** | $[Blank] | $[Blank] |
| **Total equivalent units** | [Blank] | [Blank] |
| **Cost per equivalent unit (2)** | $[Blank] | $[Blank] |
- **Costs assigned to production:**
| | Direct Materials | Conversion | Total |
|------------------|------------------|------------|-------|
| **Inventory in process, August 1** | $[Blank] | $[Blank] | [Blank] |
| **Costs incurred in August** | $[Blank] | $[Blank] | [Blank] |
| **Total costs accounted for by the Roasting Department** | | | [Blank] |
Costs allocated to completed and partially completed units:
- **Inventory in process, August 1 balance**
- Direct Materials: [Blank]
- Conversion: [Blank]
- **To complete inventory in process, August 1**
- Direct Materials: $[Blank]
- Conversion: $[Blank]
- **Cost of completed August 1 work in process**
- Direct Materials: [Blank]
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- The first production department of Stone Incorporated reports the following for April. Direct Materials Percent Complete 75% Beginning work in process inventory Units started this period Completed and transferred out Ending work in process inventory Units 73,000 387,000 365,000 95,000 85% Conversion Percent Complete 25% 35%arrow_forwardPlease refer to the attached images.arrow_forwardReconcile the number of physical units to find the missing amounts. Determine the number of units started and completed each month. Beginning Work in Process Ending Work in Process Conversion Conversion Complete Complete (percent) (percent) Month February June September December Units 2,000 4,700 3,800 48 66 27 39 Units Started 23,900 26,400 22,900 Units Completed 23 36 59 76 Units Started and Completedarrow_forward
- Using the following terms and following the format in the textbook, prepare the worksheet to show the calculation to answer the question: Units completed and transferred Cost per material Cost per conversion out Equivalent units conversion Beginning inventory Units started in production Total units to account for Total work in process Ending inventory Units transferred in Total units accounted for Costs to account for Question: How many units were started into production in a period if there were zero units of beginning work in process inventory, 1,100 units in ending work in process inventory, and 21,500 completed and transferred out units? PLEASE NOTE: For units, use commas as needed (i.e. 1,234). Term Unitsarrow_forwardFor the month of July, Jacobs Company incurs a direct materials cost of $6,000 for 6,000 gallons of paint produced in its Mixing Department. It also incurs conversion costs of $1,470 with 70% completed. If the conversion cost per equivalent unit was $0.25 per gallon in June, what is the difference in the conversion cost per equivalent unit between the two months? a. $1.00 b. $0.10 c. $0.75 O d. $0.35arrow_forwardThe following data show the units in beginning work in process inventory, the number of units started, the number of units transferred, and the percent completion of the ending work in process for conversion. Given that materials are added at the beginning of the process. Quarter BeginningWIP Started TransferredOut Conversion(%) 1 — 134,150 133,250 25 2 524 132,594 132,493 24 3 339 133,246 133,445 20 4 489 134,845 134,434 23 What are the equivalent units for material and conversion costs for each quarter using the weighted-average method? Assume that the quarters are independent. Quarter 1 Quarter 2 Quarter 3 Quarter 4 Units for material costs fill in the blank 1 fill in the blank 2 fill in the blank 3 fill in the blank 4 Units for conversion costs fill in the blank 5 fill in the blank 6 fill in the blank 7 fill in the blank 8arrow_forward
- takeAssignment/takeAssignmentMain.do?invoker=&takeAssignmentSessionLocator=&inprogress3Dfalse Calculator A company started the month with 8,333 units in work in process inventory. It started 23,146 units and had an ending inventory of 9,322. The units were 100% complete to materials and 67% complete with conversion. How many units were transferred out during the period? Units transferred out Previous Next Email Instructor Submit Test for Grading All work saved. 5:18 PM 10/2/2020 arch Oarrow_forwardProvide answerarrow_forwardIf 500 units were one-fourth completed at May 31, 5,500 units were completed during May, and the first-in, first-out method is used, what was the number of equivalent units of production with respect to conversion costs for May? a. 4,875 b. 4,500 c. 5,625 d. 5,500 2. What is the conversion cost per equivalent unit? a. $10 b. $25 c. $32 d. $15arrow_forward
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