Answer:
1. Blending Department
Equivalent units of production (EUP)
Units %material EUP %Conversion EUP
Units Completed and 160000 100% 160000 100% 160000
transferred out
Units of Ending work 40000 100% 40000 25% 10000
in process
Equivalent units of production 200,000 170,000
2. Cost per Equivalent unit
Material Conversion
Cost of Beginning Work in Process $25,200 $24,800
Cost added during June <u>$3,34,800 $238,700
</u>
Total Costs $360,000 $263,500
/Equivalent units of Production <u> 200000 170000 </u>
Cost per Equivalent unit of Production <u> $1.80 $1.55</u>
<u></u>
3. Cost of ending WIP
EUP Cost per EUP Total Cost
Material 40000 $1.80 $72,000
Conversion 10000 $1.55 <u>$15,500</u>
Total Ending work in process <u>$87,500</u>
<u></u>
4. Cost of Units Transferred Out
EUP Cost per EUP Total Cost
Material 160000 $1.80 $288,000
Conversion 160000 $1.55 <u>$248,000</u>
Total transferred out <u>$536,000</u>
<u></u>
5. Blending Department
Cost Reconciliation Report
Particulars Amount
Costs to be accounted for
Cost of beginning WIP inventory $50,000
($25200+$24800)
Cost added to production $573,500
($334800+$238700) <u> </u>
Total Cost to be accounted for <u>$623,500</u>
<u>
</u>
Costs accounted for as follows:
Cost of unit transferred out $536,000
Cost of Ending WIP <u>$87,500</u>
Total cost accounted for <u>$623,500</u>
