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 70,000 460,000 450,000 80,000 75% 25% Work in process, beginning Cost added during June Materials Conversion $ 36,550 $ 13,500 $ 391,850 $287,300 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.

Answer 1

1) Materials Conversion 510,000 470,000 Equivalent unit of production 2) 2) Materials Conversion $ 0.84 $ 0.64 Cost per equivalent unit 3) Materials Conversion Total $ 50,400 $ 12,800 $ 63,200 Cost of ending work in process inventory 4) Materials Conversion Total $ 378,000 $ 288,000 $ 666,000 Cost of units completed and transferred out 5) Blending Department Cost reconciliation Costs to be accounted for: Cost of beginning Work in process inventory ($36,550+$13,500) Cost added to production during the period ($391,850+$287,300) Total Cost to be accounted for $ 50,050 $ 679,150 $ 729,200 Cost accounted for as follow: Cost of unit completed and transferred out Cost of ending work in process inventory Total Cost accounted for Working Note: $ 666,000 $ 63,200 $ 729,200

A B с D E F 1 Equivalent Units Of Production (EUP)- Weighted Average Method 2 Units % Materials EUP-Materials % Conversion Eup Conversion 3 Units Completed and transferred Out 450,000 100% 450,000 100% 450,000 4 Ending work in process - units 80,000 75% 60,000 25% 20,000 5 Equivalent units of production 530,000 510,000 470,000 6 7 Cost per EUP Materials Conversion 8 Cost of beginning work in process $ 36,550 $ 13,500 9 Cost added during June $ 391,850 $ 287,300 10 Total costs costs $ 428,400 costs $ 300,800 11 Equivalent units of production EUP 510000 EUP 470000 12 Cost per Equivalent Unit of Production $ 0.84 $ 0.64 13 Cost Assignment and Reconciliation 14 Costs transferred out EUP Cost per EUP Total cost 15 Direct materials 450,000 $ 0.84 $ 378,000 16 Conversion 450,000 $ 0.64 $ 288,000 17 Total transferred out $ 666,000 18 Costs of ending work in process EUP Cost per EUP Total cost 19 Direct materials 60,000 $ 0.84 $ 50,400 20 Conversion 20,000 $ 0.64 $ 12,800 21 Total ending work in process $ 63,200 22 Total costs accounted for $ 729,200 $

А B С D E F 1 Equivalent Units Of Production (EUP)- Weighted Average Method 2 Units % Materials EUP-Materials % Conversion Eup Conversion 3 Units Completed and transferred Out 450000 1 =+B3*C3 1 =+B3*E3 4 Ending work in process - units 80000 0.75 =+B4*C4 0.25 =+B4%E4 5 Equivalent units of production =+B3+B4 =+D3+D4 =+F3+F4 6 7 Cost per EUP Materials Conversion 8 Cost of beginning work in process 36550 13500 9 Cost added during June 391850 287300 10 Total costs costs =+D8+D9 costs =+F8+F9 11 Equivalent units of production EUP =+D5 EUP =+F5 12 Cost per Equivalent Unit of Production =+D10/011 =+F10/F11 13 Cost Assignment and Reconciliation 14 Costs transferred out EUP Cost per EUP Total cost 15 Direct materials =+D3 =+D12 =+B15*C15 16 Conversion =+F3 =+F12 =+B16*C16 17 Total transferred out =+D15+D16 18 Costs of ending work in process EUP Cost per EUP Total cost 19 Direct materials =+D4 =+D12 =+B19*C19 20 Conversion =+F4 =+F12 =+B20*C20 21 Total ending work in process =+D19+D20 22 Total costs accounted for =+E17+E21