Question

Sunspot Beverages, Ltd., of Fiji 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
	Units	Materials	Conversion
Work in process, beginning	102,000	70%	40%
Started into production	486,000
Completed and transferred out	476,000
Work in process, ending	112,000	75%	25%

	Materials		Conversion
Work in process, beginning	$	42,500	$	15,600
Cost added during June	$	455,900	$	332,160

Required:

Assume that the company uses the weighted-average method.

1.	Determine the equivalent units for June for the Blending Department.

  

2.	Compute the costs per equivalent unit for the Blending Department. (Round your answers to 2 decimal places.)

  

3.	Determine the total cost of ending work in process inventory and the total cost of units transferred to the Bottling Department. (Do not round your intermediate calculations.)

  

4.	Prepare a cost reconciliation report for the Blending Department for June. (Do not round your intermediate calculations.)

  

Answer 1

MATERIALS CONVERSION UNITS TO BE ASSIGNED COST WHOLE UNITS COMPLETION | EQUIVALENT UNITS COMPLETION | EQUIVALENT UNITS TRANSFERRED 476000 100% 476000 100% 476000 ENDING WIP 112000 5% 84000 25% 21000 TOTAL EQUIVALENT UNITS 588000 560000 497000 COST INCURRED OPENING WIP COST TOTAL COST 455900 42500 498400 332160 15600 347760 788060 58100 846160 TOTAL EQUIVALENT UNITS 560000 497000 COST PER EQUIVALENT UNITS 0.89 0.69971831 COST ALLOCATED TO TRANSFERRE 476000 0.89 COST ALLOCATED TO CLOSING WIH84000 0.89 423640 4760000.70 74760 21000 0.70 498400 333065.9155 14694.08451 347760 756705.9155 89454.08451 846160 COST RECONCILLIATION REPORT MATERIAL CONVERSION TOTAL OPENING WIP COST COST INCURRED DURING THE YEA TOTAL COST 42500 455900 498400 15600 332160 347760 58100 788060 846160 COST CHARGED TO TRANSFERRED COST CHARGED TO CLOSING WIP TOTAL COST 423640 333065.9155 74760 14694.08451 347760 756705.9155 89454.08451 846160 498400