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 1000 750 Work in process, beginning Started into production Completed and transferred out Work in process, ending Units 20,000 180,000 160,000 40,000 1005 25 Work in process, beginning Cost added during June Materials Conversion $ 25,200 $ 24,800 $ 334,800 $ 238,700 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

Required 1 :
	Materials	Conversion
Units completed and transferred out	160000	160000
(+) Equivalent ending work in process [ Ending work in process units * % Completion ]	40000	10000
Equivalent units of production	200000	170000

Required 2 :
	Materials	Conversion
Beginning work in process cost	25200	24800
(+) Cost added during June	334800	238700
Total cost	360000	263500
(/) Equivalent units of production	200000	170000
Cost per equivalent unit	1.80	1.55

Required 3 :
	Materials	Conversion	Total
Cost of ending work in process inventory [ Equivalent ending work in process * Cost per equivalent unit ]	72000	15500	87500
Required 4 :
	Materials	Conversion	Total
Cost of units completed and transferred out [ Units completed and transferred out * Cost per equivalent unit ]	288000	248000	536000

Required 5 :
Blending Department
Cost Reconciliation
Cost to be accounted for :
Cost of beginning work in process inventory ( 25200 + 24800 )	50000
Costs added to production during the period ( 334800 + 238700 )	573500
Total cost to be accounted for	623500
Costs accounted for as follows :
Cost of ending work in process inventory	87500
Cost of units completed and transferred out	536000
Total cost accounted for	623500