Da Silva Company produces a variety of stationery products. One product, sealing wax sticks, passes through two processes: blending and moulding. The weighted average method is used to account for the costs of production. After blending, the resulting product is sent to the moulding department, where it is poured into moulds and cooled. The following information relates to the blending process for August: a. WIP, August I, had 20,000 kilograms, 20 percent complete. Costs associated with partially completed units were: Materials Direct labour Overhead applied $220,000 30,000 10,000 NEL Chapter 6 Process Costing b. WIP, August 31 , had 30,000 kilograms, 70 percent complete. c. Units completed and transferred out totalled 500,000 kilograms. All inputs are added uniformly, and costs added during the month were: Required: Materials Direct labour Overhead applied $5,610,000 3,877,500 1,292,500

I. physical flow schedule and an equivalent unit schedule.

2. Calculate the unit cost, rounded to two decimal places.

3. Determine the cost of EWIP and the cost of goods transferred out.

4. cost reconciliation.

5. Suppose that the materials added uniformly in blending are paraffin and pigment and that the manager of the company wants to know how much each of these materials costs per equivalent unit produced. The costs of the materials in BWIP are as follows: Paraffin Pigment $120,000 100,000 The costs of the materials added during the man the are also given: Paraffin Pigment $3,060,000 2,550,000 create the equivalent unit schedule with cost categories for each material. Calculate the cost per unit for each type of material.