Question

Check my work Problem 5-15 Comprehensive Problem-Weighted Average Method [LO5-2, LO5-3, LO5-4, LO5-5) points Sunspot Beverages, Ltd., of Fiji uses the weighted average method in its process costing system. It 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 June. Skipped Percent Completed Materials Conversion 708 408 eBook Work in process, beginning Started into production Completed and transferred out Work in process, ending Units 94,000 452,000 442,000 104,000 758 25% References Work in process, beginning Cost added during June Materials Conversion $ 37,700 $ 13,700 $ 404,300 $ 290,500 Required: 1. Calculate the Blending Department's equivalent units of production for materials and conversion in June. 2. Calculate the Blending Department's cost per equivalent unit for materials and conversion in June. 3. Calculate the Blending Department's cost of ending work in process inventory for materials, conversion, and in total for June. 4. Calculate the Blending Department's cost of units transferred out to the Bottling Department for materials, conversion, and in total for June. 5. Prepare a cost reconciliation report for the Blending Department for June.

Answer 1

1) Equivalent unit

	Material	Conversion
Unit transferred out	442000	442000
Ending WIP	104000*75% = 78000	26000
Equivalent unit	520000	468000

2) Cost per equivalent unit

	Material	Conversion
Beginning WIP	37700	13700
Cost added	404300	290500
Total cost	442000	304200
equivalent unit	520000	468000
Cost per equivalent unit	0.85	0.65

3) Cost of ending WIP

	Material	Conversion	Total
Cost of ending WIP	78000*.85 = 66300	26000*.65 = 16900	83200

4) Cost of unit transferred out

	Material	Conversion	Total
Cost of unit transferred out	375700	287300	663000

5) Cost reconciliation

Cost to be accounted for
Beginning WIP	51400
Cost added	694800
Total cost to be accounted for	746200
Cost accounted as
Cost of unit transferred out	663000
Cost of ending WIP	83200
Total cost accounted as	746200