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 110,000 520,000 510,000 120,000 75% 25% Work in process, beginning Cost added during June Materials Conversion $ 48,100 $ 17,900 $ 515,900 $ 381,700

Need help answered 4B,C,D and 5

Answer 1

Question 1

Solution

	Material	Conversion
Equivalent Units of Production	600,000	540,000

.

	Material	Conversion
Cost per equivalent Unit	$ 0.94	$ 0.74

.

	Material	Conversion	Total
Ending Inventory	$ 84,600	$ 22,200	$ 106,800

.

	Material	Conversion	Total
Units Completed and transferred	$ 479,400	$ 377,400	$ 856,800

.

Cost Reconciliation
Costs to be accounted for:
Beginning Wip cost	$ 66,000
Cost incurred during period	$ 897,600
Total cost to be accounted for	$ 963,600
Costs accounted for as follows:
Cost of Units Transferred Out	$ 856,800
Cost of Ending Wip	$ 106,800
Total cost accounted for	$ 963,600

Working

Statement of Equivalent Units(Weighted average)
				Material		Conversion
	Units			Complete %	Equivalent units	Complete %	Equivalent units
Transferred out	510,000			100%	510,000	100%	510,000
Ending WIP	120,000			75%	90,000	25%	30,000
Total	630,000			Total	600,000	Total	540,000

.

Cost per Equivalent Units (Weighted average)
COST		Material	Conversion	TOTAL
Beginning WIP Inventory Cost (A)		$ 48,100	$ 17,900	$ 66,000
Cost incurred during period (B)		$ 515,900	$ 381,700	$ 897,600
Total Cost to be accounted for (C=A+B)		$ 564,000	$ 399,600	$ 963,600
Total Equivalent Units(D)		600,000	540,000
Cost per Equivalent Units (E=C/D)		$ 0.94	$ 0.74	$ 1.68

.

Statement of cost (Weighted average)
Cost	Equivalent Cost/unit	Ending WIP		Transferred
		Units	Cost Allocated	Units	Cost Allocated
Material	$ 0.94	90,000	$          84,600.00	510,000	$        479,400.00
Conversion	$ 0.74	30,000	$          22,200.00	510,000	$        377,400.00
TOTAL	$ 963,600	TOTAL	$ 106,800	TOTAL	$ 856,800