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 Work in process, beginning 104,000 Started into production 494,500 Completed and transferred out 484,500 Work in process, ending 114,000 Units 70% 40% 75% 25% Work in process, beginning Cost added during June Materials Conversion $ 44,300 $ 16,300 $ 474,400 $ 347,930 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.

Answer 1

1
	Materials	Conversion
Units completed and transferred out	484500	484500
Work in process, ending:
114000 X 75%	85500
114000 X 25%		28500
Equivalent units of production	570000	513000
2
	Materials	Conversion
Work in process, June 1	44300	16300
Cost added during June	474400	347930
Total costs	518700	364230
Divide by Equivalent units of production	570000	513000
Cost per Equivalent unit	0.91	0.71
3
	Materials	Conversion	Total
Work in process, ending units	85500	28500
X Cost per Equivalent unit	0.91	0.71
Cost of ending work in process inventory	77805	20235	98040
4
	Materials	Conversion	Total
Units completed and transferred out	484500	484500
X Cost per Equivalent unit	0.91	0.71
Cost of Units completed and transferred out	440895	343995	784890
5
Cost Reconciliation:
Cost to be accounted for:
Cost of Beginning work in Process inventory	60600
Cost added to production during June	822330
Total Cost to be accounted for	882930
Cost accounted for as follows:
Cost of Units completed and transferred out	784890
Cost of ending work in process inventory	98040
Total Cost accounted for	882930