Question

00 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 10,eee 170,000 20,00 Production data: Units in process, July 1 (materials 100% complete; conversion 30x complete) Units started into production Units in process, July 31 (materials 100% complete; conversion des complete) Cost data: Work in process inventory, July 1: Materials cast Conversion cost Cost added during the month: Materials cost Conversion cost eBook $ 8,5ee 4,900 od $ $ 139,40e 244,28e ferences 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 Blonding 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 Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Required 5 Calculate the Blending Department's equivalent units of production for materials and conversion for July Materials Conversion Equivalent units of production

Answer 1

Part 1: Equivalent units

	Material	Conversion
Equivalent Units	170,000	165,000

Part 2: Cost per Equivalent units

	Material	Conversion
Equivalent Units	170,000	165,000
Total Cost	139,400	244,200
Cost per Equivalent Units	0.8200	1.4800

Part 3: Cost of Ending WIP

	Material	Conversion
Ending WIP Units	20,000	20,000
WIP Equivalent Units	20,000 (#1)	8,000 (#1)
Cost per Equivalent Units	0.8200	1.4800
Total Cost	16,400	11,840

Part 4: Cost of Units transferred Out

	Material	Conversion
Opening Transferred Units	10,000	10,000
Opening Transferred Equivalent Units for the period	-	7,000 (#1)
Opening Cost	8,500	4,900
Add: Cost during the period	-	10,360
Cost (i)	8,500	15,260
Current Transferred Units	150,000	150,000
Transferred Equivalent Units	150,000	150,000
Cost per Equivalent Units	0.8200	1.4800
Cost (ii)	123,000	222,000
Total Cost	131,500	226,900

Note: The same will be added seperately since the company is following FIFO method of accounting for costing.

Part 5: Cost reconciliation report for the month of July

Cost to be account for:
Material	139,400
Conversion	244,200
Total Cost to be account for	383,600
Cost to be account for as follows:
Opening Inventory Allocated	10,360
Introduced and Completed in the same period	345,000
Closing Inventory Allocated	28,240
Total Cost accounted for	383,600

Working Notes:

Particulars	Units	Particulars	Units	Material	Conversion
Completion	Eq. Units	Completion	Eq. Units
Opening inventory	10,000	Opening inventory	10000	0.00%	0	70.00%	7000
Introduced during the period	170,000	Introduced and Completed	150000	100.00%	150000	100.00%	150000
		Closing Inventory	20000	100.00%	20000	40.00%	8000
	180,000		180,000		170000		165000