The debits to Work in Process—Roasting Department for Morning Brew Coffee Company for August, together with information concerning production, are as follows:

All direct materials are placed in process at the beginning of production.

a. Prepare a cost of production report, presenting the following computations:

1. Direct materials and conversion equivalent units of production for August

2. Direct materials and conversion costs per equivalent unit for August

3. Cost of goods finished during August

4. Cost of work in process at August 31

b. Compute and evaluate the change in cost per equivalent unit for direct materials and conversion from the previous month (July).

Transcribed Image Text:

Work in process, August 1, 1,200 pounds, 30% completed $ 5,970 $4,980 *Direct materials (1,200 x $4.15) 990 Conversion (1,200 x 30% x $2.75) $5,970 $81,180 Coffee beans added during August, 19,800 pounds Conversion costs during August Work in process, August 31, 900 pounds, 80% completed Goods finished during August, 20,100 pounds 59,334