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:
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Production data:
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Units in process, July 1 (materials 100% complete; conversion 40% complete)
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10,500
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Units started into production
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186,000
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Units in process, July 31 (materials 100% complete; conversion 50% complete)
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27,000
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Cost data:
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Work in process inventory, July 1:
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Materials cost
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$9,000
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Conversion cost
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$5,800
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Cost added during the month:
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Materials cost
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$169,260
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Conversion cost
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$232,440
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All materials are added at the beginning of work in the Blending Department. The company uses the FIFO method in its process costing system.
Requirement 1: Determine the equivalent units for July for the Blending Department.
Requirement 2: Compute the costs per equivalent unit for July for the Blending Department.
Requirement 3: (a) Determine the total cost of ending work in process inventory.
(b) Determine the total cost of units transferred to the next process for the Blending Department in July.
Requirement 4: Prepare a cost reconciliation report for the Blending Department for June.