Question

Selzik Company makes super-premium cake mixes that go through two processing departments—Blending and Packaging. The following activity was recorded in the Blending Department during July:

Production data:
Units in process, July 1 (materials 100% complete; conversion 30% complete)		10,000
Units started into production		170,000
Units in process, July 31 (materials 100% complete; conversion 40% complete)		20,000
Cost data:
Work in process inventory, July 1:
Materials cost	$	8,500
Conversion cost	$	4,900
Cost added during the month:
Materials cost	$	139,400
Conversion cost	$	244,200

All materials are added at the beginning of work in the Blending Department. The company uses the FIFO method in its process costing system.

Required:

1. Calculate the Blending Department's equivalent units of production for materials and conversion for July.

2. Calculate the Blending Department's cost per equivalent unit for materials and conversion for July.

3. Calculate the Blending Department's cost of ending work in process inventory for materials, conversion, and in total for July.

4. Calculate the Blending Department's cost of units transferred out to the next department for materials, conversion, and in total for July.

5. Prepare a cost reconciliation report for the Blending Department for July.

Answer 1