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 705 408 Work in process, beginning Started into production Completed and transferred out Work in process, ending Units 74,000 367,000 357,000 84,000 759 256 Work in process, beginning Cost added during June Materials Conversion $ 28,000 $ 9,800 $ 299,600 $ 209,440 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

Equivalent Units Physical Units Materials Conversion Units to account for: Beginning work in process Started in Production Total units to account for 74,000 367,000 441,000 Units account for: Completed and transferred out Ending work in process 1 Equivalent units of production 357,000 84,000 441,000 357,000 63,000 420,000 357,000 21,000 378,000 Costs to account for Beginning work in process Cost added during period Total costs to accounted for Divided by Total equivalent units 2 Cost per equivalent unit Materials Conversion Total $28,000 $9,800 $37,800 $299,600 $209,440 $509,040 $327,600 $219,240 $546,840 420,000 378,000 $0.78 $0.58 Costs account for: 4 Completed and transferred out 3 Ending work in process Total Costs account for $278,460 $49,140 $327,600 $207,060 $12,180 $219,240 $485,520 $61,320 $546,840 5 Cost Reconciliation Cost to be accounted for: Beginning work in process Cost added during period Total cost to be accounted for Costs accounted for as follows: Completed and transferred out Ending work in process Total cost accounted for $37,800 $509,040 $546,840 $485,520 $61,320 $546,840