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Production Cost Report

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Prepare a production report for the Blending Department for July. Use the following three steps as guide in preparing your report.

1- Prepare a quantity schedule and compute the equivalent units.
2- Compute the costs per equivalent unit for the month.
3-Using the data from 1 and 2 above, prepare a cost reconciliation.

See attached file for full problem description.

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:
Units in process, July 1 (materials 100% complete,
conversion 30% complete) .............
Units started into production ............................
Units completed and transferred to Packaging .....................
Units in proces, July 32( materials 100% complete,
conversion 40% complete )...........................

Cost Data:
Work in process inventory, July 1:
Materials cost...................................
Conversion cost ...............................

Cost added during the month:
Materials cost .................................
Conversion cost ..............................
Total cost.................................................................

All materials are added at the beginning of work in the Blending Department. The company uses the FIFO method.

Required:
Prepare a productin report for the Blending Department for July. Use the following three steps as guide in preparing your report.
1- Prepare a quantity schedule and compute the equivalent units.
2- Compute the costs per equivalent unit for the month.
3-Using the data from 1 and 2 above, prepare a cost reconciliation.

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The solution explains how to prepare a production cost report for the Blending Department of Selzik Company

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Problem 4-20

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:
Units in process, July 1 (materials 100% complete,
conversion 30% complete) ............. 10,000
Units started into production ............................ 170,000
Units completed and transferred to Packaging ..................... ?
Units in proces, July 32( materials 100% complete,
conversion 40% complete )........................... 20,000

Cost Data:
Work in process inventory, July 1:
Materials cost................................... $8,500 ...

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