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 104,000 494,500 484,500 114,000 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 Blend Department's cost of ending work in process inventory for materials, cor ersion, 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 equivalent units of production for materials and conversion in June. Materials Conversion Equivalent units of production

Answer 1

1)
	Units	% of Completion	Equvalent Units of Production -Pulping	% of Completion	Equvalent Units of Production -Conversion
Unit transferred out	484,500	100%	484,500	100%	484,500
Ending work in process	114,000	75%	85,500	25%	28,500
Total units	598,500		570,000		513,000
	Pulping	Conversion
Equivalent units of production	570,000	513,000
2)
Particulars	Pulping	Conversion
Work in Process inventory - Beginning	$ 44,300	$ 16,300
Add: Cost added during March	$ 474,400	$ 347,930
Total Cost	$ 518,700	$ 364,230
/ Equivalent units of production	570,000	513,000
Cost per Equivalent unit	$ 0.91	$ 0.71
3)
	Pulping	Conversion	Total
Cost of Ending work in process inventory	$ 77,805 ( 85,500 x $ 0.91 )	$ 20,235 ( 28,500 x $ 0.71 )	$ 98,040
4)
	Pulping	Conversion	Total
Cost of units transferred out	$ 440,895 ( 484,500 x $ 0.91 )	$ 343,995 ( 484,500 x $ 0.71 )	$ 784,890
5)
Drying Department Cost Reconcilation
Cost to be accounted for :
Beginning work in process inventory ( $ 44,300 + $ 16,300 )	$ 60,600
Cost added during march ( $ 474,400 + $ 347,930 )	$ 822,330
Total Cost to be accounted for	$ 882,930
Cost accounted for as follows
Cost of unit transferred out	$ 98,040
Cost of ending work in process	$ 784,890
Total Cost accounted for	$ 882,930