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 9,000 barrels with the following costs.

 

	Amount			Degree of Completion
Filtering costs transferred in	$	10,540			100	%
Costs added in Blending
Direct materials	$	0			0	%
Conversion costs		18,335			30	%
	$	18,335
Work in  process June 1	$	28,875

 

During June, 116,000 barrels were transferred in from Filtering at a cost of $151,960. The following costs were added in Blending in June.

 

Direct materials	$	387,500
Conversion costs		538,265
Total costs added	$	925,765

 

Blending finished 115,000 barrels in June and transferred them to Packaging. At the end of June, there were 10,000 barrels in work in process inventory. The units were 60 percent complete with respect to conversion costs.
 
The Blending Department uses the FIFO method of process costing. The Filtering Department at Eire uses the weighted-average method of process costing. The cost analyst in Blending has learned that if the Filtering Department at Eire had used the FIFO method, the amount of costs transferred in from Filtering would have been $11,700 in the beginning work in process and $150,800 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.)

 

Answer 1