Exercise 1: Process costing 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: Total Units in process, July 1 10,000 (materials 100% complete; conversion 30% complete) Units started into Production 170,000 Units complete and transferred to Packaging ? Units in process, July 31 (materials 100% complete; conversion 40% complete) 20,000 Cost data: Work in process inventory, July 1: Materials cost $ 8,500 Conversion cost 4,900 $13,400 Cost added during the month: Materials cost $139,400 Conversion cost 244,200 383,600 Total Cost $397,000 All materials are added at the beginning of work in the Blending Department. Required: Prepare a production report in weighted average method and FIFO method for the Blending Department for July. Use the following 3 steps as a guide in preparing your report: 1. Prepare a quantity schedule and compute the equivalents units 2. Compute the costs per equivalent unit for the month 3. Using the data from (1) and (2) above, prepare a cost reconciliation