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. Units Percent Completed Materials Conversion 708 40% Work in process, beginning Started into production Completed and transferred out Work in process, ending 52,000 273,500 263,500 62,000 75% 25% Work in process, beginning Cost added during June Materials Conversion $ 17,500 $ 5,300 $ 187,100 $ 111,880 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

Answer 1

1) Equivalent unit

	Material	Conversion Cost
Unit transferred out	263500	263500
Ending WIP	62000*75% = 46500	15500
Total equivalent unit	310000	279000

2) Cost per equivalent unit

	Material	Conversion Cost
Beginning WIP	17500	5300
Cost added	187100	111880
Total Cost	204600	117180
Equivalent unit	310000	279000
Cost per equivalent unit	0.66	0.42

3) Cost of ending WIP

	Material	Conversion Cost	Total
Cost of ending WIP	46500*.66 = 30690	15500*.42 = 6510	37200

4) Cost of unit transferred out

	Material	Conversion	Total
Cost of unit transferred out	173910	110670	284580

5) Cost reconciliation

Cost to be accounted for
Beginning WIP	22800
Cost added	298980
Total cost to be accounted for	321780
Cost accounted as
Cost of unit transferred out	284580
Cost of ending WIP	37200
Total cost accounted as	321780