Kipling Manufacturing, Inc., operates a plant that produces its own regionally-marketed Super Salad Dressing. The dressing is produced in two processes, blending and bottling. In the Blending Department, all materials are added at the beginning of the process, and labor and overhead are incurred evenly throughout the process. Kipling uses the weighted average method. The Work in Process—Blending Department account for January 2016 follows:

Work in Process - Blending Department
January 1 inventory (4,000 gallons, 75% processed)	$40,000
Transferred to Bottling Department (70,000 gallons)
January charges:
Direct material (71,000 gallons)	568,000
Direct labor	164,000
Manufacturing overhead	186,000
January 31 inventory ( _______ gallons, 60% processed)

Required

Calculate the following amounts for the Blending Department:
a. Number of units in the January 31 inventory.
b. Equivalent units for materials and conversion costs.
c. January cost per equivalent unit for materials and conversion costs.
d. Cost of the units transferred to the Bottling Department.
e. Cost of the incomplete units in the January 31 inventory

Round average cost per equivalent unit to four decimal places. Use rounded answers for subsequent calculations. Round other answers to the nearest whole number.

Kipling Manufacturing, Inc. Blending Department Flow of Units and Equivalent Units Calculation, January 2016
		Equivalent Units
		% Work done	Direct Materials	% Work Done	Conversion Costs
Complete/Transferred	Answer	Answer%	Answer	Answer%	Answer
Ending Inventory	a. Answer	Answer%	Answer	Answer%	Answer
Total	Answer	b.	Answer		Answer	b.

Product Cost Report
			Direct Materials		Conversion Costs
Beginning Inventory	$Answer		$Answer		$Answer
Current	Answer		Answer		Answer
Total Costs to Account For	$Answer		$Answer		$Answer
÷ Total Equivalent Units			Answer		Answer
Average cost / Equivalent unit (round four decimal places)			$Answer	c.	$Answer	c.
Complete / Transferred:
Direct Materials	$Answer
Conversion costs	Answer
Cost of Goods Manufactured	$Answer	d.
Ending Inventory:
Direct Materials	$Answer
Conversion costs	Answer
Cost of Ending Inventory	$Answer	e.
Total Costs Allocated	$Answer