Answer:
A. Material 200,000
Conversion 170,000
B. Materials $ 1.80
Conversion $ 1.55
C. Cost of units completed and transferred out $288,000 $ 248,000 $ 536,000
D. Cost of beginning work in process inventory $50,000
Costs added to production during the period $573,500
Explanation:
A. Calculation for the Blending Department's equivalent units of production for materials and conversion in June.
Equivalent units of production:
Materials
Transferred to next department
160,000
Equivalent units in ending work in process inventory:
Materials: 40,000
(40,000 units × 100% complete )
Equivalent units of production 200,000
Conversion
Transferred to next department
160,000
Add Conversion10,000
40,000 units × 25% complete
Equivalent units of production 170,000
B. Calculation for the Blending Department's cost per equivalent unit for materials and conversion in June.
Cost per equivalent unit:
Materials Conversion
Cost of beginning work in process $25,200 $24,800
Cost added during the period 334,800 238,700
Total cost $360,000 $263,500 (a)
Equivalent units of production
200,000 170,000 (b)
Cost per equivalent unit (a) ÷ (b) $ 1.80 $ 1.55
Materials =($360,000÷200,000=$ 1.80)
Conversion=($263,500÷170,000=$ 1.55)
C. Calculation for the Blending Department's cost of ending work in process inventory for materials, conversion, and in total for June.
Materials Conversion Total
Ending work in process inventory:
Equivalent units 40,000 10,000
Cost per equivalent unit $1.80 $1.55
Cost of ending work in process inventory $72,000 $15,500 $ 87,500
Units completed and transferred out:
Units transferred to the next department 160,00 160,000
Cost per equivalent unit $1.80 $1.55
Cost of units completed and transferred out $288,000 $ 248,000 $ 536,000
D. Preparation of a cost reconciliation report for the Blending Department for June
Cost of beginning work in process inventory $50,000
($25,200 + $24,800)
Costs added to production during the period $573,500
($334,800 + $238,700)
