Question

PROBLEM 5-15 Comprehensive Problem-Weighted Average Method L05-2. LO5-3, LO5-4. LO5-5 Sunspor Beverages, Ltd., of Fiji uses the weighted average method in ils 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 100% Conversion 75% Work in process, beginning ........ Started into production ............ Completed and transferred out..... Work in process, ending ........... Units 20,000 180,000 160,000 40.000 100% 25% Work in process, beginning ........ Cost added during June .......... Materials $25,200 $334,800 Conversion $24,800 $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.

thank you

Answer 1

Solution 1:
Equivalent units of production (EUP) - Weighted Average method
	Units	% material	EUP-Materials	% Conversion	EUP- Conversion
Units Completed and transferred out (10000+100000-15000)	160000	100%	160000	100%	160000
units of Ending work in process	40000	100%	40000	25%	10000
Equivalent units of production			200000		170000
SOLUTION 2:
Cost per Equivalent unit:	Material	Conversion
Cost of Beginning Work in Process	$25,200	$24,800
Cost added during June	$3,34,800	$2,38,700
Total Costs	$3,60,000	$2,63,500
/Equivalent units of Production	200000	170000
Cost per Equivalent unit of Production	$1.80	$1.55

SOLUTION 3:
Cost of ending work in process	EUP	Cost per EUP	Total Cost
Material	40000	$1.80	$72,000
Conversion	10000	$1.55	$15,500
Total Ending work in process			$87,500

SOLUTION 4:
Cost of Units Transferred Out	EUP	Cost per EUP	Total Cost
Material	160000	$1.80	$2,88,000
Conversion	160000	$1.55	$2,48,000
Total transferred out			$5,36,000

Solution 5:

Cost Reconciliation Report
Particulars	Amount
costs to be accounted for:
Cost of beginning WIP inventory	$50,000
Cost added to production	$5,73,500
Total Cost to be accounted for	$6,23,500
Costs accounted for as follows:
Cost of unit transferred out	$5,36,000
Cost of Ending WIP	$87,500
Total cost accounted for	$6,23,500