Problem 18-2B

Process Cost System / Cost Accounting Warren / Reeve / Duchac Problem 18-2B solution

Cost of production report
Ariba 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 March 31, 2010:

1. Prepare a cost of production report, and identify the missing amounts for Work in Process—Roasting Department.


2. Assuming that the March 1 work in process inventory includes $54,600 of direct materials, determine the increase or decrease in the cost per equivalent unit for direct materials and conversion between February and March.