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. |
Determine the equivalent units for July for the Blending Department. |
| 2. |
Compute the costs per equivalent unit for July for the Blending Department. (Round your answers to 2 decimal places.) |
| 3. |
Determine the total cost of ending work in process inventory and the total cost of units transferred to the next process for the Blending Department in July.
|
| 4. |
Prepare a cost reconciliation report for the Blending Department for July.
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