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Management Accounting (Mba002) Assignment 4

The document provides production and cost data for the Blending Department of Selzik Company for the month of July. It asks the reader to prepare a production report using the weighted average and FIFO methods in 3 steps: 1) prepare a quantity schedule and compute equivalent units, 2) compute costs per equivalent unit, and 3) prepare a cost reconciliation using data from steps 1 and 2.

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464 views2 pages

Management Accounting (Mba002) Assignment 4

The document provides production and cost data for the Blending Department of Selzik Company for the month of July. It asks the reader to prepare a production report using the weighted average and FIFO methods in 3 steps: 1) prepare a quantity schedule and compute equivalent units, 2) compute costs per equivalent unit, and 3) prepare a cost reconciliation using data from steps 1 and 2.

Uploaded by

John Michael Yu
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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MANAGEMENT ACCOUNTING (MBA002)

Assignment 4

Exercise 1: Process costing

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:
Total
Units in process, July 1 10,000
(materials 100% complete; conversion 30% complete)
Units started into Production 170,000
Units complete and transferred to Packaging ?
Units in process, July 31
(materials 100% complete; conversion 40% complete) 20,000
Cost data:
Work in process inventory, July 1:
Materials cost $ 8,500
Conversion cost 4,900 $13,400
Cost added during the month:
Materials cost $139,400
Conversion cost 244,200 383,600
Total Cost $397,000

All materials are added at the beginning of work in the Blending Department.
Required:
Prepare a production report in weighted average method and FIFO method for the Blending Department
for July. Use the following 3 steps as a guide in preparing your report:
1. Prepare a quantity schedule and compute the equivalents 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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