Chapter 4.A, Problem 10P

PROBLEM 4A-10 Equivalent Units of Production; Assigning Costs; Cost Reconciliation Report-FIFO Method LO4-6, LO4-7, LO4-8, LO4-9

Selzik Company makes super-premium cake mixes that to through two processing departments-Blending and Packaging. The following activity was recorded in the Blending Department during July:

Production data:

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 Blending Department for July