Tyrone Company produces a variety of stationery products. One product, sealing wax sticks, passes through two processes: blending and molding. The weighted average method is used to account for the costs of production. After blending, the resulting product is sent to the molding department, where it is poured into molds and cooled. The following information relates to the blending process for August:

a. WIP, August 1, had 20,000 pounds, 20 percent complete. Costs associated with partially completed units were:
Materials .................... $220,000
Direct labor .................... 30,000
Overhead applied ............. 10,000
b. WIP, August 31, had 30,000 pounds, 70 percent complete.
c. Units completed and transferred out totaled 500,000 pounds. Costs added during the month were (all inputs are added uniformly):
Materials .............. $5,610,000
Direct labor ............ 3,877,500

Overhead applied ...... 1,292,500

Required:
1. Prepare
(a) A physical flow schedule and

(b) An equivalent unit schedule.

Calculate the unit cost. Round to four decimal places.
Compute the cost of EWIP and the cost of goods transferred out.
Prepare a cost reconciliation.
Suppose that the materials added uniformly in blending are paraffin and pigment and that the manager of the company wants to know how much each of these materials costs per equivalent unit produced. The costs of the materials in BWIP are as follows:
Paraffin ........ $120,000
Pigment ......... 100,000
The costs of the materials added during the month are also given:
Paraffin ....... $3,060,000
Pigment ......... 2,550,000
Prepare an equivalent unit schedule with cost categories for each material. Calculate the cost per unit for each type of material.