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 10,000 170,000 20,000 Units in process, July 1 (materials 100% complete; conversion 30% complete) Units started into Production Units complete and transferred to Packaging Units in process, July 31 (materials 100% complete; conversion 40% complete) Cost data: Work in process inventory, July 1: Materials cost Conversion cost Cost added during the month: Materials cost Conversion cost Total Cost $ 8,500 4,900 $13,400 $139,400 244,200 383,600 $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