Chaptr 20 problem 8

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

Work in process, August 1, 700 pounds, 20% completed			$ 3,479*
	*Direct materials (700 X $4.70)	$3,290
	Conversion (700 X 20% X $1.35)	189
	$3,479
Coffee beans added during August, 14,300 pounds			65,780
Conversion costs during August			21,942
Work in process, August 31, 400 pounds, 42% completed			?
Goods finished during August, 14,600 pounds			?

Question Content Area

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

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

1. Direct materials and conversionequivalent units of production for August
2. Direct materials and conversioncosts per equivalent unit for August
3. Cost of goods finished during August
4. Cost of work in process at August 31

If an amount is zero, enter in "0". For the cost per equivalent unit, round your answer to the nearest cent.

b. 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.