Data:

Litres:
Beginning work in process inventory	0
Started production	9,700
Completed and transferred out to Packaging in May	6,800
Ending work in process inventory (30% of the way through
the blending process)	2,900
Costs:
Beginning work in process inventory	$0
Costs added during May:
Direct materials (dyes)	5,820
Direct labour	1,000
Manufacturing overhead	1,301
Total costs added during May	$8,121

Start	? % Compete	? % Compete

Requirement 2. Summarize the physical flow of units and compute total equivalent units for direct materials and for conversion costs. (For entries with a zero balance, make sure to enter "0" in the appropriate column.)

Colour Creations
Blending Department
Flow of Physical Units and Computation of Equivalent Units
	Flow of	Equivalent Units
	Physical	Direct	Conversion
Flow of Production	Units	Materials	Costs
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 zero balance, make sure to enter "0" in the appropriate cell(s). Round the cost per equivalent unit to the nearest cent.)

Colour Creations
Blending Department
Cost per Equivalent Unit
	Direct	Conversion
Cost per Equivalent Unit:	Materials	Costs	Total
Cost per equivalent unit

Requirement 4. Assign total costs to units (litres).

Begin by calculating the total cost of the units for a. completed and transferred out to the Packaging Department and then b. the Blending Department ending work in process. (Round your answers to the nearest whole dollar. Enter quantities first, then the cost per equivalent unit amounts in the same order as calculated in the preceding step.)

Colour Creations
Blending Department
Assignment of Costs
	Assign costs:	Direct Materials			Conversion Costs				Total
a.			x (		+		)
b.
			x
							x
	Total cost accounted for

Requirement 5. What is the average cost per litre transferred out of the Blending Department to the Packaging Department? Why would Colour Creations's managers want to know this cost?

First identify the labels to compute the average cost per litre transferred out, then compute the average cost per litre transferred out of the Blending Department to the Packaging Department. (Round your answer to the nearest cent.)

				Average cost
	/		=	per litre

/

=

Why would Colour Creations's managers want to know this cost? Managers will want to know this cost to compare it to their ...........budgeted target costs per equivalent unit direct material costs . They may also use the cost information when .......