Selzik Company makes 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) Units started into production Units in process, July 31 (materials 100 % complete; conversion 40% complete) Cost data: Work in process inventory, July 1: Materials cost Conversion cost Cost added during the month: Materials cost Conversion cost 10,000 170,000 20,000 Required: For July: $ 8,500 $ 4,900 $ 139,400 $ 244,200 All materials are added at the beginning of work in the Blending Department. The company uses the FIFO method of process costing. 1. Calculate the Blending Department's equivalent units of production for materials and conversion. 2. Calculate the Blending Department's cost per equivalent unit for materials and conversion. 3. Calculate the Blending Department's cost of ending work in process inventory for materials, conversion, and in total. 4. Calculate the Blending Department's cost of units transferred out to the next department for materials, conversion, and in total. 5. Prepare a cost reconciliation report for the Blending Department.
Selzik Company makes 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) Units started into production Units in process, July 31 (materials 100 % complete; conversion 40% complete) Cost data: Work in process inventory, July 1: Materials cost Conversion cost Cost added during the month: Materials cost Conversion cost 10,000 170,000 20,000 Required: For July: $ 8,500 $ 4,900 $ 139,400 $ 244,200 All materials are added at the beginning of work in the Blending Department. The company uses the FIFO method of process costing. 1. Calculate the Blending Department's equivalent units of production for materials and conversion. 2. Calculate the Blending Department's cost per equivalent unit for materials and conversion. 3. Calculate the Blending Department's cost of ending work in process inventory for materials, conversion, and in total. 4. Calculate the Blending Department's cost of units transferred out to the next department for materials, conversion, and in total. 5. Prepare a cost reconciliation report for the Blending Department.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Concept explainers
Process Costing
Process costing is a sort of operation costing which is employed to determine the value of a product at each process or stage of producing process, applicable where goods produced from a series of continuous operations or procedure.
Job Costing
Job costing is adhesive costs of each and every job involved in the production processes. It is an accounting measure. It is a method which determines the cost of specific jobs, which are performed according to the consumer’s specifications. Job costing is possible only in businesses where the production is done as per the customer’s requirement. For example, some customers order to manufacture furniture as per their needs.
ABC Costing
Cost Accounting is a form of managerial accounting that helps the company in assessing the total variable cost so as to compute the cost of production. Cost accounting is generally used by the management so as to ensure better decision-making. In comparison to financial accounting, cost accounting has to follow a set standard ad can be used flexibly by the management as per their needs. The types of Cost Accounting include – Lean Accounting, Standard Costing, Marginal Costing and Activity Based Costing.
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105.
Transcribed Image Text:Selzik Company makes 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)
Units started into production
Units in process, July 31 (materials 100 % complete; conversion
40% complete)
Cost data:
Work in process inventory, July 1:
Materials cost
Conversion cost
Cost added during the month:
Materials cost
Conversion cost
10,000
170,000
20,000
Required:
For July:
$ 8,500
$ 4,900
$ 139,400
$ 244,200
All materials are added at the beginning of work in the Blending Department. The company uses the FIFO method of process costing.
1. Calculate the Blending Department's equivalent units of production for materials and conversion.
2. Calculate the Blending Department's cost per equivalent unit for materials and conversion.
3. Calculate the Blending Department's cost of ending work in process inventory for materials, conversion, and in total.
4. Calculate the Blending Department's cost of units transferred out to the next department for materials, conversion, and in total.
5. Prepare a cost reconciliation report for the Blending Department.
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