Color World prepares and packages paint products. The company has two departments: (1) Blending and (2) Packaging Direct materials are added at the beginning of the blending process (dyes) and at the end of the packaging process (cans). Conversion costs are added evenly throughout each process. Data from the month of May for the Blending Department are as follows: - Data table 0 8,400 gallons 6,200 gallons 2,200 gallons Gallons: Beginning work in process inventory Started production Completed and transferred out to Packaging in May Ending work in process inventory (40% of the way through the blending process) Costs: Beginning work in process inventory Costs added during May Direct materials (dyes) Direct labor Manufacturing overhead Total costs added during May 5,460 920 1,912 A 8,292 Requirement 1. Fill-in the time line for the Blending Department. Start Complete Complete Requirement 2. Summarize the physical flow of units and compute total equivalent units for direct materials and for conversion costs. (For entries with a 0 balance, make sure to enter "0" in the appropriate column.) Blending Department Equivalent Unit Computation Month Ended May 31 Flow of Physical Units Equivalent Units Direct Conversion Materials Costs Flow of Production Units to account for: Units accounted for: Total equivalent units Requirement 3. Summarize total costs to account for and find the cost per equivalent unit for direct materials and for conversion costs. (For entries with a $0 balance, make sure to enter "0" in the appropriate cell(s). Enter the cost per equivalent unit to two decimal places.) Blending Department Cost per Equivalent Unit Month Ended May 31 Direct Conversion Materials Costs Total Cost per equivalent unit Requirement 4. Assign total costs to units (gallons): (a) Completed and transferred out to the Packaging Department and (b) In the Blending Department ending work in process inventory. (Enter quantities first, then the cost per equivalent unit amounts in the same order as calculated in the preceding step.) Blending Department Month Ended May 31 Assigning Costs Direct Conversion Materials Costs Total a. Completed and transferred out: b. Ending work in process: Total costs accounted for Requirement 5. What is the average cost per gallon transferred out of the Blending Department to the Packaging Department? Why would the company's managers want to know this cost? First, identify the labels to compute the average cost per gallon transferred out, then compute the average cost per gallon transferred out of the Blending Department to the Packaging Department. (Round your answer to two decimal places.) Average cost per gallon Why would Color World's managers want to know this cost? Managers will want to know this cost to compare it to their They may also use the cost information when