Question

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. eBook Percent Completed Materials Conversion 70% 40% Work in process, beginning Started into production Completed and transferred out Work in process, ending Units 102,000 486,000 476,000 112,00 Print 75% 25% References Work in process, beginning Cost added during June Materials Conversion $ 42,5e0 $ 15,600 $ 455,900 $ 332,160 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 Required 1 Required 2 >

Answer 1

1)	Equivalent Units of Production (EUP) - Weighted Average Method
					Units	% Mat.	EUP- Mat.	% Conv.	EUP- Conv.
	Units completed and transferred out				476000	100%	476000	100%	476000
	Units in ending inventory				112000	75%	84000	25%	28000
	Equivalent units of production						560000		504000

2)	Cost per Equivalent Unit of Production
						Materials		Conversion
	Beginning costs					$      42,500.00		$   15,600.00
	During the month costs					$    455,900.00		$ 332,160.00
	Total cost				Costs	$    498,400.00	Costs	$ 347,760.00
	÷	Equivalent units of production			EUP	560000	EUP	504000
	Cost per equivalent unit of production					$                0.89		$             0.69

3)	Cost of ending work in process				EUP	Cost/ EUP	Total Cost
	Direct Materials				84000	$      0.89	$      74,760.00
	Conversion				28000	$      0.69	$      19,320.00
	Total cost of ending work in process						$      94,080.00

4)	Cost of units transferred out				EUP	Cost/ EUP	Total Cost
	Direct Materials				476000	$      0.89	$    423,640.00
	Conversion				476000	$      0.69	$    328,440.00
	Total costs transferred out						$    752,080.00

5)

Cost Reconciliation
Costs to be accounted for:
WIP Beginning			$   58,100.00
Cost added during June			$ 788,060.00
Total cost to be accounted for			$ 846,160.00
Cost accounted for as follows:
Cost of ending work in process			$   94,080.00
Cost of units transferred out			$ 752,080.00
Total cost accounted for			$ 846,160.00