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 60,000 307,500 297,500 70,000 75% 25% Work in process, beginning Cost added during June Materials Conversion $ 21,200 $ 7,200 $ 227,300 $ 153,450 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 cost of ending work in process inventory for materials, conversion, and in total for June. (Round your intermediate calculations to 2 decimal places.) Materials Conversion Total Cost of ending work in process inventory < Required 2 Required 4 >

Answer 1

1
	Materials	Conversion
Units completed and transferred out	297500	297500
Work in process, ending:
70000 X 75%	52500
70000 X 25%		17500
Equivalent units of production	350000	315000
2
	Materials	Conversion
Work in process, beginning	21200	7200
Cost added during June	227300	153450
Total costs	248500	160650
Divide by Equivalent units of production	350000	315000
Cost per Equivalent unit	0.71	0.51
3
	Materials	Conversion	Total
Work in process, ending units	52500	17500
X Cost per Equivalent unit	0.71	0.51
Cost of ending work in process inventory	37275	8925	46200
4
	Materials	Conversion	Total
Units completed and transferred out	297500	297500
X Cost per Equivalent unit	0.71	0.51
Cost of Units completed and transferred out	211225	151725	362950
5
Cost Reconciliation:
Cost to be accounted for:
Cost of Beginning work in Process inventory	28400
Cost added to production during June	380750
Total Cost to be accounted for	409150
Cost accounted for as follows:
Cost of Units completed and transferred out	362950
Cost of ending work in process inventory	46200
Total Cost accounted for	409150