Question

Problem 4-15 Comprehensive Problem-Weighted Average Method (LO4-2, LO4-3, LO4.4, LO4-5) 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 100% 75% Work in process, beginning Started into production Completed and transferred out Work in process, ending Units 20,000 180.000 160.00 40.000 1001 25% 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. < Prev 7 of 7 Score answer >

Answer 1

1.Blending department's equivalent units of production for materials and conversion in June

Materials Conversion

Transferred to next department 160,000 160,000

Ending work-in-process:

Materials(40,000 units x 100% complete) 40,000

Conversion(40,000 units x 25% complete) 10,000

Equivalent units of production 200,000 170,000

2.Blending Department's cost per equivalent unit for material and conversion in June

Materials Conversion

Cost of beginning work-in process $25,200 $24,800

Cost added during the period $334,800    $238,700

Total Cost(a)    $360,000    $263,500

Equivalent units of production(b) 200,000    170,000

Cost per Equivalent unit (a)/(b) $1.80 $1.55

3.Blending department's cost of ending work-in-process inventory for materials,conversion and in total for June

Materials Conversion Total

Equivalent units of production 40,000 10,000

Cost per Equivalent unit $1.80 $1.55

Cost of ending work in process inventory $72,000 $15,500 $87,500

4.Blending department's cost of units transferred out to the Bottling Department for materials,conversion and in total for June

Materials Conversion Total

Units transferred to the next department 160,000 160,000

Cost per equivalent unit $1.80 $1.55

Cost of units completed and transferred out    $288,000    $248,000 $536,000

5.Cost reconciliation report for Blending Department for June

Cost to be accounted for:

Cost of beginning work in process inventory $50,000

Cost added to production during the period $573,500

Total cost to be accounted for $623,500

Cost accounted for as follows:

Cost of ending work in process inventory    $87,500

Cost of units completed and transferred out $536,000

Total cost accounted for $623,500

Calculations:

Cost of beginning work in process inventory = $25,200 + $24,800 = $50,000

Cost added to production during the period = $334,800 + $238,700 = $573,500