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 90,000 435,000 425,000 100,000 75% 25% Work in process, beginning Cost added during June Materials Conversion $ 35,400 $ 12,700 $ 379,600 $ 270,800 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. 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 < Required 1 Required 2 >

Answer 1

1) Equivalent unit

	Material	Conversion
Unit transferred out	425000	425000
Ending WIP	75000	25000
Total	500000	450000

2) Cost per equivalent unit

	Material	Conversion
Beginning WIP	35400	12700
Cost added	379600	270800
Total Cost	415000	283500
Equivalent unit	500000	450000
Cost per equivalent unit	0.83	0.63

3) Cost of ending WIP

	Material	Conversion	Total
Cost of Ending WIP	75000*.83 = 62250	15750	78000

4) Cost of unit transferred out

	Material	Conversion	Total
Cost of unit transferred out	425000*.83 = 352750	267750	620500

5) Cost reconciliation

Cost to be accounted for
Beginning WIP	48100
Cost added	650400
Total Cost to be accounted for	698500
Cost accounted as
Cost of unit transferred out	620500
Cost of ending WIP	78000
Total Cost accounted as	698500