how can I compute the costs per equivalent unit for the month?

MANAGEMENT ACCOUNTING (MBA002)

Assignment 4

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 duri

ng July:

Production data:

Total

Units in process, July 1

(materials 100% complete; conversion 30% complete)

10,000

Units started into Production

170,000

Units complete and transferred to Packaging

?

Units in process, July 31

(materials 100% co

mplete; 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

2

44,200

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