Question

Sweetwater Beverages, Inc. makes blended tropical fruit drinks in two stages. Fruit juices are extracted from fresh fruits and then blended in the Blending Department. The blended juices are then bottled and packed for shipping in the Bottling department. The following information pertains to the operations of the Blending Department for October.

		Percent Completed
	Units	Materials	Conversion
Work in process, beginning	20,000	100%	70%
Started into production	170,000
Completed and transferred out	160,000
Work in process, ending	50,000	100%	45%
		Materials	Conversion
Work in process, beginning		$25,300	$24,800
Cost added during October		$334,700	$227,500

Required:

Assume that the company uses the weighted-average method.

1. Determine the equivalent units for October for the Blending Department.

2. Compute the costs per equivalent unit for the Blending Department.

3. Determine the total cost of ending work in process inventory and the total cost of units transferred to

   the Bottling Department.

4. Prepare a Production Report for October for the Blending Department.

Answer 1

Cost of Prduction report -Blending Department (weighted avg method)
ProductionDepartment		Equivalent Units
Flow Of Units	Physical Units	Material	Conversion Cost
Units to be accounted for
Beginning work in process inventory	20000
Units started this period	170000
Total u nits to be accounted for	190000
Units accounnted for:
Units transferred out (b)	160000	160000	160000
Ending work in progress inventory c (100% transferred and 45% conversion)	50000	50000	22500
Total units to be accounted for (f)	210000	210000	182500
Flow of Cost
Cost in the begnning work in progress inventory	50100	25300	24800
cost added to process	562200	334700	227500
Total Cost to be accounted for (e)	612300	360000	252300
Cost per equivalent unit (a)	3.10	1.71	1.38
Cost accounted for
Cost assigned to units transferred out (a*b)	495480	274286	221195
Cost in ending work in progress inventory (a*c)	116820	85714	31105
Total Cost accounted for	612300	360000	252300
	Material	Conversion Cost
the equivalent units for October for the Blending Department.	210000	182500
	Total in $
costs per equivalent unit for the Blending Department.	3.10
total cost of ending work in process inventory	495480
the total cost of units transferred	116820
If any doubt please comment