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Silk 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% & conversion 30% complete) 10,000Units started into production 170,000Units in process, Jul 31 (materials 100% & conversion 40% complete) 20,000Cost data:Work in process inventory, July 1:Materials cost $8,500Conversion cost $4,900Cost added during the month:Materials cost $139,400Conversion cost $244,200All materials are added at the beginning of work in the Blending Department. The company uses the FIFO method in its process costing system.Required: M-06Determine the equivalent units for July for the Blending Department.Compute the costs per equivalent unit for July for the Blending Department.Determine the total cost of ending work in process inventory and the total cost of units transferred to the next process for the Blending Department in July.Prepare a cost reconciliation report for the Blending Department for July.
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