The Hershey Company makes candy for the retail consumer market. One product is the well-known, Chocolate Kiss. It manufactures this product in the following departments: Melting, Molding, and Wrapping.

In the Melting Department, the food ingredients including unsweetened chocolate are placed in large melting vats along with sugar in specific proportions. They are melted together in order to perfect this well-known candy. The result is a gooey-blend of melted chocolate.

This mixture is transferred from the Melting Department to the Molding Department, and is placed in aluminum molds that are shaped like the final product, Chocolate Kisses. The molds are cooled for the required time until hardened. After the chocolate is cooled, it is transferred to the Wrapping Department.

In the Wrapping Department, the solid chocolate pieces are wrapped with silver foil, and a small white paper strip bearing the product name is inserted. Once individually wrapped, they are placed in a consumer-style bag ready to sell in supermarkets.

The company uses the weighted average method in its process cost system. Data for June in the Molding Department follows:

Hershey Company - Molding Department

Units Melting Conversion

Work in process inventory, June 1 2,500 100% 20%

Work in process inventory, June 30 4,000 100% 25%

Melting cost in work in process inventory, June 1 $2,400

Conversion cost in work in process inventory, June 1 $250

Units transferred to the next department 78,500

Melting cost added during June $51,225

Conversion cost added during June $15,650

No raw materials are added in the Molding Department. Melting cost represents the costs of the ingredients transferred in form the Melting Department. The candy is processed in the Molding Department in batches, each unit in the table above is a batch, and one batch of candy mixture produces a set amount of Chocolate Kisses that is passed into the Wrapping Department.

Required:

1. Compute the Molding Departments equivalent units of production for mixing and conversion in June.

2. Compute the Molding Departments cost per equivalent units of production for melting and conversion in June.

3. Compute the Molding Departments cost of ending inventory for mixing, conversion, and in total for June.

4. Compute the Molding Departments costs of transferred out to the Wrapping Department for melting, conversion, and in total for June.

5. Prepare a cost reconciliation report for the Molding Department for June.