Selzk Company makes super-premium cake mixes that go through two processing depa

Question

Selzk 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 points Production data Units in proceas, July 1 (materials 1008 complete: conversion 308 complete) Units started into production Units in process, July 31 (materials 100 10,000 170,000 20,000 eBook Print Relerences complete: conversion 40 complete Coet data: Work in process inventory, July i Materiala coat Conversion cont 8,500 4.900 Cost added during the month : Materials cost Converaion eost $ 139,400 $ 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. 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 Biending Department for July

Explanation / Answer

1) Unit transferred out = 10000+170000-20000 = 160000 Units

Equivalent unit of material =(10000*0%)+150000+(20000*100%) = 170000 Units

Equivalent unit of conversion = (10000*70%)+150000+(20000*40%) = 165000 Units

2) Cost per equivalent unit :

Material = 139400/170000 = 0.82

Conversion = 244200/165000 = 1.48

3) Cost of ending work in process :

4) Calculate cost of units transferred out :

5) Cost reconciliation report

Material Conversion Total Cost of ending work in process 20000*0.82 = 16400 20000*40%*1.48 = 11840 28240

Related Questions

Navigate

• Browse (All)
• Browse S
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.