Sunspot Beverages, Ltd, of Fiji uses the weighted-average method in its process

Question

Sunspot Beverages, Ltd, of Fiji uses the weighted-average method in its process costing system. It makes in two stages. Fruit juices are extracted from fresh fruits and then blended in the Blending Department. The bottled and packed for shipping in the Bottling Department. The following information pertains to the operations of the Blending Department for June. tropical fruit drinks e then Started into production 400 256,5e0 246,500 58,08e Work in process, ending 25% Cost added during June $ 169,800 107,238 Required: 1. Calculate the Blending Departments equivalent units of production for materials and conversion in June 2. Calculate the Blending Departmen 3. Calculate the Blending Department's cost of ending work in process inventory for mat 4. Calculate the Blending Department's cost of units transferred out to the Bottling Department for materials for June. t's cost per equivalent unit for materials and conversion in June erials, conversion, and in total for June 5. Prepare a cost reconciliation report for the Blending Department for June Com and in June. units of Calculate the Blending 261,000

Explanation / Answer

1 Calculate the Blending Department's equivalent units of production for materials and conversion in June Materials Conversion Completed and transferred out 246500 246500 Ending work in process Materials - 58000*75% 43500 Conversion - 58000*25% 14500 Equivalent units of Production 290000 261000 2 Calculate the Blending Department's cost per equivalent unit for materials and conversion in June Materials Conversion Cost of Beginning work in process $15,800 $5,000 Cost added during June $169,800 $107,230 Total Cost $185,600 $112,230 Equivalent units of Production 290000 261000 $0.64 $0.43 3 Calculate the Blending Department's cost of Ending work in process inventory for materials, conversion and in total Materials Conversion Total Ending work in process 43500 14500 Cost per equivalent per unit $0.64 $0.43 Cost of ending work in process inventory $27,840.00 $6,235.00 $34,075.00 4 Calculate the Blending Departments cost of units transferred out to the Bottling Department for materials, conversion and in total Materials Conversion Total Completed and transferred out 246500 246500 Cost per equivalent per unit $0.64 $0.43 Cost of Units Transferred out $157,760.00 $105,995.00 $263,755.00 5 Prepare a cost reconciliation report for the Blending Department for June Blending Department Cost Reconciliation Costs to be accounted for: Cost of Beginning work in process inventory $20,800 Cost added during June $277,030 169800+107230 Total cost to be accounted for $297,830 Costs accounted for as follows: Cost of ending work in process inventory $34,075 Cost of Units completed and transferred out $263,755 Total cost accounted for $297,830

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