Question

Eire Products is a specialty lubricants company. The Lake Plant produces a single product in three departments: Filtering, Blending, and Packaging. Additional materials are added in the Blending Process when units are 50 to 55 percent complete with respect to conversion. Information for operations in June in the Blending process appear as follows.

Work in process on June 1 consisted of 12600 barrels with the following costs.

	Amount			Degree of Completion
Filtering costs transferred in	$	11620			100	%
Costs added in Blending
Direct materials	$	0			0	%
Conversion costs		21305			30	%
	$	21305
Work in process June 1	$	32925

During June, 134000 barrels were transferred in from Filtering at a cost of $442,840. The following costs were added in Blending in June.

Direct materials	$	718,340
Conversion costs		1,136,207
Total costs added	$	1,854,547

Blending finished 133,000 barrels in June and transferred them to Packaging. At the end of June, there were 13,600 barrels in work in process inventory. The units were 60 percent complete with respect to conversion costs.

The Blending Department uses the weighted-average method of process costing. The Filtering Department at Eire uses the FIFO method of process costing. The cost analyst in Blending has learned that if the Filtering Department at Eire had used the weighted average method, the amount of costs transferred in from Filtering would have been $15,740 in the beginning work in process and $171,260 for the amount transferred in this month.

Required:

Prepare a production cost report for June for the Blending Department. (Round "Cost per equivalent unit" to 2 decimal places.)

EIRE PRODUCTS
Blending Department
Production Cost Report—Weighted-Average
	Physical units	Total Costs	Prior Department Costs	Materials	Conversion
Flow of Production Units
Units to be accounted for:
Beginning WIP inventory
Units started this period
Total units to be accounted for	0
Units accounted for:
Units completed and transferred out:
From beginning inventory
Started and completed currently
Total transferred out	0
Units in ending WIP inventory
Total units accounted for	0		0	0	0
Costs to be accounted for:
Costs in beginning WIP inventory
Current period costs
Total costs to be accounted for		$0	$0	$0	$0
Cost per equivalent unit:
Prior department costs
Materials
Conversion
Costs accounted for:
Costs assigned to units transferred out:
Prior department costs
Materials
Conversion
Total costs of units transferred out		$0
Costs assigned to ending WIP inventory:
Prior department costs
Materials
Conversion
Total ending WIP inventory		$0
Total costs accounted for

Answer 1

EIRE PRODUCTS
Blending Department
Production Cost Report—Weighted-Average
	Physical units	Total Costs	Prior Department Costs	Materials	Conversion
Flow of Production Units
Units to be accounted for:
Beginning WIP inventory	12600
Units started this period	134000
Total units to be accounted for	146600
Units accounted for:
Units completed and transferred out:
From beginning inventory	12600
Started and completed currently	120400
Total transferred out	133000		133000	133000	133000
Units in ending WIP inventory	13600		13600	13600	8160
Total units accounted for	146600		146600	146600	141160
Costs to be accounted for:
Costs in beginning WIP inventory		$32,925.00	$11,620.00	$0.00	$21,305.00
Current period costs		$2,297,387.00	$442,840.00	$718,340.00	$1,136,207.00
Total costs to be accounted for		$2,330,312.00	$454,460.00	$718,340.00	$1,157,512.00
Cost per equivalent unit:
Prior department costs			$3.10
Materials				$4.90
Conversion					$8.20
Costs accounted for:
Costs assigned to units transferred out:
Prior department costs		$412,300.00	$412,300.00
Materials		$651,700.00		$651,700.00
Conversion		$1,090,600.00			$1,090,600.00
Total costs of units transferred out		$2,154,600.00
Costs assigned to ending WIP inventory:
Prior department costs		$42,160.00	$42,160.00
Materials		$66,640.00		$66,640.00
Conversion		$66,912.00			$66,912.00
Total ending WIP inventory		$175,712.00
Total costs accounted for		$2,330,312.00