Pennsylvania Company Produces a product that passes through two processes: Grinding and Mixing. Information related to its Grinding department manufacturing activities for July follows. The company uses the weighted-average method of process costing.

Grinding Department Grinding Department

Raw Materials $100,000 Beginning WIP units 5,000

Raw material Purchased on credit $211,400 Percentage complete Materials 100%

Direct Materials used ($190,000) Percentage complete conversion 70%

Indirect Materials used ($ 51,400) Beginning WIP Inventory:

Ending Inventory $ 70,000 Direct Materials used $20,000

Direct Labor incurred $ 9,600

Factory Payroll: Overhead applied (120% DL) $19,200

Direct Labor incurred $ 55,500 Total Costs of beg WIP $48,800

Indirect labor incurred $ 50,625 Units started this period 20,000

Total Payroll $106,125 Units transferred to mixing this period 17,000

Ending Work in Process units 8,000

Factory Overhead: Percentage completed Materials 100%

Indirect Materials used $51,400 percentage completed Conversion 20%

Indirect Labor used $50,625

Other overhead costs $71,725 Factory Overhead Applied $111,000

Total Factory Overhead $173,750 Overhead applied (200% of direct Labor)

1. Prepare a physical flow reconciliation for July
2. Compute the equivalent units of production in July for direct materials and conversion
3. Compute the costs per equivalent unit of production in July for direct materials and conversion
4. Prepare a report of costs accounted for and a report of costs to account for