Question

Problem 5-15 Comprehensive Problem-Weighted Average Method [LO5-2, LO5-3, LO5-4, LO5-5] 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 55% 50% Work in process, beginning Started into production Completed and transferred out Work in process, ending Units 120,000 192,000 182,000 130,000 - 608 408 Work in process, beginning Cost added during June Materials Conversion $ 13,500 $ 3,900 $ 145,100 $ 82,680 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

	Beginning work in process			120,000	Completed & transferred			182,000
	started during the year			192,000	Ending work in process			130,000
	units to account for			312,000	units accounted for			312,000
1)	Equivalent units of production
				units	%mat	Materials	%CC	CC
	Completed & transferred			182,000	100%	182,000	100%	182,000
	Ending work in process			130,000	60%	78,000	40%	52,000
	Equilvalent units of production					260,000		234,000	answer
2)	Cost per Equivalent units
					Materials	CC	total
	work in process,beginning				13,500	3,900	17,400
	cost added during June				145,100	82,680	227,780
	tota cost (A)				158,600	86,580	245,180
	Equivalent units (B)				260,000	234,000
	cost per unit c=a/b				0.61	0.37	0.98	answer
3)	Cost of ending work in process
	Materials	(78000*.61)		47580
	CC	(52000*.37)		19240
	total cost of Ending work in process				66820
4)	Cost of units transferred out
	Materials	(182000*.61)		111020
	CC	(182000*.37)		67340
	Cost of units transferred out				178360
5)	Cost Reconciliation Report
	cost to be accounted
	Beginning work in process				17,400
	cost added during the year				227,780
	cost to be accounted				245,180
	cost accounted for
	cost of ending work in process				66820
	cost of units transferred out				178360
	cost accounted for				245180