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 700 400 Work in process, beginning Started into production Completed and transferred out Work in process, ending Units 74,000 367,000 357,000 84,000 756 250 Work in process, beginning Cost added during June Materials Conversion $ 28,000 $ 9,800 $ 299,600 $ 209,440 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.

Answer 1

	Beginning work in process			74,000	Completed & transferred			357,000
	started during the year			367,000	Ending work in process			84,000
	units to account for			441,000	units accounted for			441,000
1)	Equivalent units of production
				units	%mat	Materials	%CC	CC
	Completed & transferred			357,000	100%	357,000	100%	357,000
	Ending work in process			84,000	75%	63,000	25%	21,000
	Equilvalent units of production					420,000		378,000	answer
2)	Cost per Equivalent units
					Materials	CC	total
	work in process,beginning				28,000	9,800	37,800
	cost added during June				299,600	209,440	509,040
	tota cost (A)				327,600	219,240	546,840
	Equivalent units (B)				420,000	378,000
	cost per unit c=a/b				0.78	0.58	1.36	answer
3)	Cost of ending work in process
	Materials	(63,000*.78)		49140
	CC	(21,000*.58)		12180
	total cost of Ending work in process				61320
4)	Cost of units transferred out
	Materials	(357000*.78)		278460
	CC	(357000*.58)		207060
	Cost of units transferred out				485520
5)	Cost Reconciliation Report
	cost to be accounted
	Beginning work in process				37,800
	cost added during the year				509,040
	cost to be accounted				546,840
	cost accounted for
	cost of ending work in process				61320
	cost of units transferred out				485520
	cost accounted for				546840