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.

Please explain how to do this. Thank you!

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.

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. (Round your answers to 2 decimal places.)

3. Calculate the Blending Department's cost of ending work in process inventory for materials, conversion, and in total for June. (Round your intermediate calculations to 2 decimal places.)

4. Calculate the Blending Department's cost of units transferred out to the Bottling Department for materials, conversion, and in total for June. (Round your intermediate calculations to 2 decimal places.)

5. Prepare a cost reconciliation report for the Blending Department for June. (Round your intermediate calculations to 2 decimal places.)

Percent Completed Units Materials Conversion Work in process, beginning 68,000 70% 40% Started into production 341,500 Completed and transferred out 331,500 Work in process, ending 78,000 75% 25%

Explanation / Answer

1) Equivalent unit :

2) Calculate cost per equivalent unit:

Cost per equivalent unit

3) Calculate cost of ending work in process

4_) Calculate cost of units transferred out

5) Cost reconciliation :

Whole unit % EUP-material % EUP-conversion Units transferred out 331500 100% 331500 100% 331500 Ending work in process 78000 75% 58500 25% 19500 Total 409500 390000 351000

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