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., 4,400 units,
3/5 completed 16,016
31 Direct materials,
198,000 units 633,600 649,616
31 Direct labor 126,700 776,316
31 Factory overhead 31,700 808,016
31 Goods transferred,
198,000 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. If an amount is zero, enter "0". When computing cost per equivalent units, round to two decimal places.
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.