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 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 Materials Conversion Work in process, beginning Started into production Conpleted and transferred out Work in process, ending 102, 000 186, 000 176, 000 112, 000 70% 40% 75% 25% Work in process, beginning Cost added during June 42, 500 15, 600 $ 455,900332.160 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, c for June. 5. Prepare a cost reconcillation report for the Blending Department for June. onversidn, and in total Complete this question by entering your answers in the tabs below.

Explanation / Answer

Unit Information Unit in beginning       102,000 Units transerred Out                     476,000 Units transferred in during the period       486,000 EWIP                     112,000 Total Units accounted for       588,000 Less opening WIP                    (102,000) Units transerred in                     486,000 Units transerred out Material Conversion From opening WIP       102,000                             30,600                        61,200 Material 30% and Conversion-60% From current month Input       374,000                           374,000                     374,000 Material 100% and Conversion-100% Total for the period       476,000                           404,600                     435,200 Equivelent units Units Produced during June Material Conversion Units completed and transerred out       476,000                           404,600                     435,200 As per above table Units in ending WIP       112,000                             84,000                        28,000 Material 75% and Conversion-25% Total Units accounted for       588,000                           488,600                     463,200 Opening equivelent units       102,000                             71,400                       40,800 Material 70% and Conversion-40% Total on all period including opening                           560,000                     504,000 Cost Information Material Conversion Total Cost of work in process beginning                             42,500                        15,600                          58,100 Cost incurred during the period                           455,900                     332,160                        788,060 Total Cost to account for                           498,400                     347,760                        846,160 Total units                           560,000                     504,000 Cost per equivelent unit-Total cost/Total Units                                  0.89                            0.69 Cost accounted for Completed and transerred out-Equivelent Units       476,000                           423,640                     328,440                        752,080 Closing WIP- Equivelent Units-Material         84,000                             74,760                                -                            74,760 Closing WIP- Equivelent Units-Conversion         28,000                                      -                          19,320                          19,320 Closing WIP-Material-75% and conversion cost @ 25% Total                           498,400                     347,760                        846,160

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