Eire Products is a specialty lubricants company. The Lake Plant produces a single product in three departments: Filtering, Blending, and Packaging. Additional materials are added in the Blending Process when units are 50 to 55 percent complete with respect to conversion. Information for operations in June in the Blending process appear as follows.

Work in process on June 1 consisted of 9,000 barrels with the following costs.

	Amount	Degree of completion
Filtering costs transferred in	$ 11,700	100%
Cost added in Blending
Direct materials	$ -	0%
Conversion costs	$ 18,335	30%
Work in process June 1	$ 30,035

During June, 116,000 barrels were transferred in from Filtering at a cost of $150,800. The following costs were added in Blending in June.

Direct materials	$ 387,500
Conversion costs	$ 538,265
Total costs added	$ 925,765

Blending finished 115,000 barrels in June and transferred them to Packaging. At the end of June, there were 10,000 barrels in work-in-process inventory. The units were 60 percent complete with respect to conversion costs. The Blending Department uses FIFO method of process costing.

Required: Prepare a cost of production report for Blending department for June.

	A	B	C	D
1		(Step 1)	(Step 2) Equivalent Units
2
3	Flow of production	Physical units	Direct Material	Conversion Cost
4	Beginning WIP	9,000	Work done before current period
5	Started during current period	116,000
6	To Account For	125,000
7	Completed and transferred out during current period:	115,000
8	From beginning WIP	9,000
9	{9000 x (100% -50%); 9000 x (100% - 55%)		4500	4950
10	Started and completed	106,000
11	(106,000 x 100%; 106,000 x 100%)		106,000	106,000
12	Ending WIP	10,000
13	10,000 x 100%; 10,000 x 60%		10,000	6,000
14	Accounting for	125,000
15	Equivalent units of work done in current period		120,500	116,950
16

		Total Production Costs	Direct Material		Conversion Costs
Step 3	Beginning WIP			+
	Cost added in current period			+
	Total costs to account for			+
Step 4	Cost added in current period
	Divide by equivalent units of work done in current period
	Costs per equivalent unit of work done in current period
Step 5	Assignment of costs:
	Completed and transferred out
	Beginning WIP			+
	Costs added to beginning WIP in current period			+
	Total from beginning inventory
	Started and completed			+
	Total cost of units completed and transferred out
	Ending WIP			+
	Total costs accounted for			+