Reference no: EM131809821

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:

Production data:
Units in process, July 1 (materials 100% complete; conversion 40% complete)	10,500
Units started into production	186,000
Units in process, July 31 (materials 100% complete; conversion 50% complete)	27,000
Cost data:
Work in process inventory, July 1:
Materials cost	$9,000
Conversion cost	$5,800
Cost added during the month:
Materials cost	$169,260
Conversion cost	$232,440

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.