Question
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
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 during 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% 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:
Prepare a quantity schedule and compute the equivalents units
Compute the costs per equivalent unit for the month
Using the data from (1) and (2) above, prepare a cost reconciliation
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