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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:
Instructions
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 andMarch.
The partners expect the business to perform as follows: year 1, $18,000 net loss; year 2, $45,000 net income; and year 3, $75,000 net income.
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