Question

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.

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 700 400 Work in process, beginning Started into production Completed and transferred out Work in process, ending Units 80,000 392,500 382,500 90,000 758 258 Work in process, beginning Cost added during June Materials Conversion $ 31,500 $ 11,300 $ 337,500 $ 239,800 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. Calculate the Blending Department's cost of units transferred out to the Bottling Department for materials, conversion, and in total for lune 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) Equivalent unit

	Material	Conversion
Unit transferred out	382500	382500
Ending WIP	90000*75% = 67500	90000*25% = 22500
Total	450000	405000

2) Cost per equivalent unit

	Material	Conversion
Beginning WIP	31500	11300
Cost added	337500	239800
Total Cost	369000	251100
Equivalent unit	450000	405000
Cost per equivalent unit	0.82	0.62

3) Cost of ending WIP

	Material	Conversion	Total
Cost of ending WIP	67500*.82 = 55350	22500*.62 = 13950	69300

4) Cost of Unit transferred out

	Material	Conversion	Total
Cost of Unit transferred out	382500*.82 = 313650	237150	550800

5) Cost reconciliation

Cost to be accounted for
Beginning WIP	42800
Cost added	577300
Total cost to be accounted for	620100
Cost accounted as
Cost of unit transferred out	550800
Ending WIP	69300
Total cost accounted for	620100