Cost of Production Report 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.
Balance
Date Item Debit Credit Debit Credit
July 1 Bal., 6,100 units, 2/5 completed 7,686
31 Direct materials, 274,500 units 329,400 337,086
31 Direct labor 66,200 403,286
31 Factory overhead 16,576 419,862
31 Goods transferred, 275,000 units
31 Bal., ? units, 3/5 completed
Required:
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 $6,710 of direct materials, determine the increase or decrease in the cost per equivalent unit for direct materials and conversion between February and July.