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 121,80031
31 Direct materials, 155,000 units 620,000 741,80031
31 Direct labor 90,000 831,80031
31 Factory overhead 33,272 865,07231
31 Goods transferred, 149,000 units ?
31 Bal., ? units, 45% completed ?
Required:
a. Prepare a cost of production report, and identify the missing amounts for Work in Process—Roasting Department.
b. 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.
Answers: 1
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Hana Coffee Company roasts and packs coffee beans. The process begins by placing coffee beans into t...
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