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. Percent Completed Materials Conversion 70% 40% Work in process, beginning Started into production Completed and transferred out Work in process, ending Units 50,000 265,000 255,000 60,000 25% Work in process, beginning Cost added during June Materials Conversion $ 16,600 $ 5,000 $ 178,400 $ 105, 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.

Answer 1

luoress: fuut muces escuastes I fuords fresh fruits blended packed Aus ①: Liquialent write face production : bauticilar Qutput wiel equivalent wild i fou Materials i • Opening unit So oo 707 35000 Yuansferred to 255000 255000 nent process Closing unit 60000 757 45000 335 000 1) Fои сме Амера, когато not 107 20 ao 255 000 opening whit So ooo Transferred to 255000 next process closing unit 60 ago 25% 15000 290 ao

Matusele Социололд Cost (a) equalent unita (6) $17840 335ooo $ 10570 240000 Cost neu equivalent write (a/b) $0.53 $ 0.36 this (3. Materials conversion luding welik i Aurces's und 60.000 X757 60 00 x 25% = 45000 15000 cost peu equiralent $0 $3_ $0.53 _ 0.36 unt Cost of ending $23850 $ sua maak-in- process - Total cost = $23850 540 = $29250/- this ☺ Cost of teangsen Hose to lottlung dgeartment (60:53 +80.36) x 255000 unit = $ 2269504

Date Page nor Aus 6: cost deconciliation Repoul Модулал Gelecek in poguess , belgiassing 166 (6) Cost 21Rча |-) Коллллашдиk ДА Долала (239So) I units transferred ( 3s/so - Холл . — Далладалары- () 500 10700 (540) (973a7) 36 оо 13Sa