Selzik Company makes super-premium cake mixes that go through two processing dep

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:

All materials are added at the beginning of work in the Blending Department. The company uses the FIFO method in its process costing system.

What is the cost of ending work in process inventory?

Materials __________

Conversion _________

Total ___________

Please show step by step. Thank you

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

Explanation / Answer

FIFO method

Unit transferred out = 10000+170000-20000 = 160000

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

Conversion cost = (10000*70%+150000*100%+20000*40%) = 165000 Units

Cost per equivalent unit :

Material = 139400/170000 = 0.82

Conversion = 244200/165000 = 1.48

cost of ending work in process inventory

Material (20000*100%*0.82) 16400 Conversion (20000*40%*1.48) 11840 Total 28240

Related Questions

Navigate

• Browse (All)
• Browse S
• Subjects

---

---

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