Sunspot Beverages, Ltd., of Fiji makes blended tropical fruit drinks in two stag
ID: 2426158 • Letter: S
Question
Sunspot Beverages, Ltd., of Fiji 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 Completed and transferred out Work in process, ending 40% 96,000 70% 460,500 450,500 106,000 75% 25% Work in process, beginning Cost added during June Materials Conversion $ 38,900 14.100 $ 416,900 300,720 Required: Assumie that the company uses the weighted-average method 1. Determine the equivalent units for June for the Blending Department. MaterialsConversion Equivalent units of productionExplanation / Answer
1
Calculation of Equivalent units of production:
Physical Units
Material
Conversion
Units Transferred out
450500
450500
450500
Units in ending inventory
106000
79500
26500
(106000*75%)
(106000*25%)
Equivalent units of production
530000
477000
2
Calculation of Cost per equivalent unit:
Material
Conversion
Work in process, beginning
$ 38,900
$ 14,100
Cost Added during June
$ 416,900
$ 300,720
Total Cost (A)
$ 455,800
$ 314,820
Equivalent units of production (B)
530000
477000
Cost per equivalent unit =A/B
$ 0.86
$ 0.66
3
Calculation of Costs:
Cost of ending Work in process inventory:
Total
Material
Conversion
Equivalent Units (A)
79500
26500
Cost per equivalent unit (B)
$ 0.86
$ 0.66
Cost of ending Work in process inventory
$ 85,860.00
$ 68,370.00
$ 17,490.00
Cost of completed and transferred out:
Total
Material
Conversion
Equivalent Units (A)
450500
450500
Cost per equivalent unit (B)
$ 0.86
$ 0.66
Cost of completed and transferred out
$ 684,760.00
$ 387,430.00
$ 297,330.00
4
Cost Reconciliation:
Cost to be accounted for:
Work in process, beginning (38900 +14100)
$ 53,000.00
Cost Added during June (416900+300720)
$ 717,620.00
Total Cost to be account for
$ 770,620.00
Cost Accounted for as follows:
Cost of ending Work in process inventory
$ 85,860.00
Cost of completed and transferred out
$ 684,760.00
Total Cost Accounted for
$ 770,620.00
1
Calculation of Equivalent units of production:
Physical Units
Material
Conversion
Units Transferred out
450500
450500
450500
Units in ending inventory
106000
79500
26500
(106000*75%)
(106000*25%)
Equivalent units of production
530000
477000
2
Calculation of Cost per equivalent unit:
Material
Conversion
Work in process, beginning
$ 38,900
$ 14,100
Cost Added during June
$ 416,900
$ 300,720
Total Cost (A)
$ 455,800
$ 314,820
Equivalent units of production (B)
530000
477000
Cost per equivalent unit =A/B
$ 0.86
$ 0.66
3
Calculation of Costs:
Cost of ending Work in process inventory:
Total
Material
Conversion
Equivalent Units (A)
79500
26500
Cost per equivalent unit (B)
$ 0.86
$ 0.66
Cost of ending Work in process inventory
$ 85,860.00
$ 68,370.00
$ 17,490.00
Cost of completed and transferred out:
Total
Material
Conversion
Equivalent Units (A)
450500
450500
Cost per equivalent unit (B)
$ 0.86
$ 0.66
Cost of completed and transferred out
$ 684,760.00
$ 387,430.00
$ 297,330.00
4
Cost Reconciliation:
Cost to be accounted for:
Work in process, beginning (38900 +14100)
$ 53,000.00
Cost Added during June (416900+300720)
$ 717,620.00
Total Cost to be account for
$ 770,620.00
Cost Accounted for as follows:
Cost of ending Work in process inventory
$ 85,860.00
Cost of completed and transferred out
$ 684,760.00
Total Cost Accounted for
$ 770,620.00
Related Questions
drjack9650@gmail.com
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.