Question

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. Work in process, beginning Started into production Completed and transferred out Work in process, ending Percent Completed Units Materials Conversion 20,000 1008 758 180,000 160,000 40,000 1008 258 Work in process, beginning Cost added during June Materials Conversion $ 25,200 $ 24,800 $ 334,800 $ 238,700 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. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Required 5 Calculate the Blending Department's equivalent units of production for materials and conversion in June. Materials Conversion Equivalent units of production

Answer 1

1. Calculate Blending Department's equivalent units of production.
	Materials	Conversion
Equivalent units of production	200000	170000
2. Calculate Blending Department's cost per equivalent unit
	Materials	Conversion
Cost per equivalent unit	1.80	1.55
3. Calculate Blending Department's cost of ending work in process inventory
	Materials	Conversion	Total
Cost of ending work in process inventory	72000	15500	87500
4. Calculate Blending Department's cost of units transferred out
	Materials	Conversion	Total
Cost of units completed and transferred out	288000	248000	536000
5. Prepare a cost reconciliation report for Blending Department
Blending Department
Cost Reconciliation
Costs to be accounted for:
Beginning work in process	50000
Costs added during June	573500
Total costs to be accounted for	623500
Costs accounted for as follows:
Cost of units completed and transferred out	536000
Cost of ending work in process	87500
Total costs accounted for	623500

Above figures have been calculated in the following manner:

1. Calculate Blending Department's equivalent units of production.
	Materials	Conversion
Equivalent units of production	=160000+40000	=160000+(40000*25%)
2. Calculate Blending Department's cost per equivalent unit
	Materials	Conversion
Cost per equivalent unit	=(25200+334800)/200000	=(24800+238700)/170000
3. Calculate Blending Department's cost of ending work in process inventory
	Materials	Conversion	Total
Cost of ending work in process inventory	=40000*1.8	=(40000*25%)*1.55	=72000+15500
4. Calculate Blending Department's cost of units transferred out
	Materials	Conversion	Total
Cost of units completed and transferred out	=160000*1.8	=160000*1.55	=288000+248000
5. Prepare a cost reconciliation report for Blending Department
Blending Department
Cost Reconciliation
Costs to be accounted for:
Beginning work in process	=25200+24800
Costs added during June	=334800+238700
Total costs to be accounted for	=50000+573500
Costs accounted for as follows:
Cost of units completed and transferred out	536000
Cost of ending work in process	87500
Total costs accounted for	=536000+87500