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 308 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 coat $ 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 bystem 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

Answey page: 01 1) equivalent units of production waits 0 units shosted 4 completed 150000 Equivalent Units physical Materials conversion beginning wip wompleted 10000 7000 150000 ending wup 20000 20000 180000 170000 165000 ) cost per equivalent write Material conversion 150000 8.000 Total cost cost 244200 383600 139400 0.82 1.48 costs added during the month 3) Total wst $ units transferowed out and cost of ending inverting cost per equivalent unit 4900 13400 0 10360 10360 15260 23760 cost of beginning wif complekedi cost beginning wip brought forward 8500 costs added during the month total cost of beginning wip completed 8500 cost of units introduced (completed 183000 Total cost of units completed' transferred fout 131500 cost of ending wip units 16400 222000 345000 237260 368760 28240 11840

page-02 Reconciliation of costs costs to be accounted for : cost of beginning wip costs added dwing the month Total cost to be accounted for 147900 costs accounted for : cost of units completed {bansferred ost (31500 cost of ending wip units LTotal cost accounted for 8500 4900 13400 139400 244200 383600 249100 397000 2372601 368760 11840 28240 16400 147900 249100397000