ACCOUNT No. ACCOUNT Work in Process-Roasting Department Balance Debit Credit Debit Credit Date Item July 1 Bal., 30,000 units, 10% completed 31 121,800 741,800 Direct materials, 155,000 units 31 31 620,000 Direct labor 90,000 831,800 Factory overhead 31 33,272 865,072 Goods transferred, 149,000 units 31 Bal., ? units, 45% completed

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Arabica Highland 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:

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Instructions
1. Prepare a cost of production report and identify the missing amounts for Work in Process—Roasting Department.
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.

ACCOUNT No.
ACCOUNT Work in Process-Roasting Department
Balance
Debit
Credit
Debit
Credit
Date
Item
July 1
Bal., 30,000 units, 10% completed
31
121,800
741,800
Direct materials, 155,000 units
31
31
620,000
Direct labor
90,000
831,800
Factory overhead
31
33,272
865,072
Goods transferred, 149,000 units
31
Bal., ? units, 45% completed
Transcribed Image Text:ACCOUNT No. ACCOUNT Work in Process-Roasting Department Balance Debit Credit Debit Credit Date Item July 1 Bal., 30,000 units, 10% completed 31 121,800 741,800 Direct materials, 155,000 units 31 31 620,000 Direct labor 90,000 831,800 Factory overhead 31 33,272 865,072 Goods transferred, 149,000 units 31 Bal., ? units, 45% completed
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