2 Sunspot Beverages, Ltd, of Fiji uses the weighted-average method in its proces
ID: 2540233 • Letter: 2
Question
2 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 thern bottled and packed for shipping in the Bottling Department The following information pertains to the operations of the Blending Department for June. Percent completed (8035632) Work in process, beginning Started into production Units Materials Conversiorn e,eee 70% 350,800 Work in process, ending 80,000 75% 25% Work in Cost added during June s 25,900 9,900 278,100 s 192,6ee ess, beginning Required: 1. Calculate the Blending Departments 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 t 4. Calculate the Blending Department's cost of units transferred out to the Botting Department for materials, conversion, and in total otal for June for June. 5. Prepare a cost reconciliation report for the Blending Department for June Prey 2 of 4 Next 523 PM 3/5/2019 Search the web and WindowsExplanation / Answer
Answer
Units
Reconciliation of Units
Opening WIP
70000
Introduced
350000
TOTAL
420000
Transferred
340000
Closing WIP
80000
Statement of Equivalent Units
Material
Conversion Cost
Units
Complete %
Equivalent units
Complete %
Equivalent units
Transferred
340000
100%
340000
100%
340000
Closing WIP
80000
75%
60000
25%
20000
Total
420000
Total
400000
Total
360000
Cost per Equivalent Units
COST
Material cost
Conversion cost
TOTAL
Opening + Current cost
304000
201600
505600
Total Equivalent Units
400000
360000
Cost per Equivalent Units
$0.7600
$0.5600
$1.3200
Statement of cost
Cost
Cost/unit
Closing WIP
Transferred
Units
Cost Allocated
Units
Cost Allocated
Material
0.7600
60000
45600
340000
258400
0
Conversion cost
0.5600
20000
11200
340000
190400
0
0
Total
1.3200
TOTAL
$56800
TOTAL
$448800
Material
Conversion
Total
Cost Incurred:
WIP (beginning)
25900
9000
34900
Added during June
278100
192600
470700
Total cost
$505600
Cost Allocated
Ending WIP
EUP
60000
20000
Cost per EUP
0.76
0.56
Cost allocated (A)
45600
11200
$56800
Units transferred
EUP
340000
340000
Cost per EUP
0.76
0.56
Cost allocated (B)
258400
190400
$448800
Total cost allocated (A+B)
$505600
Units
Reconciliation of Units
Opening WIP
70000
Introduced
350000
TOTAL
420000
Transferred
340000
Closing WIP
80000
Statement of Equivalent Units
Material
Conversion Cost
Units
Complete %
Equivalent units
Complete %
Equivalent units
Transferred
340000
100%
340000
100%
340000
Closing WIP
80000
75%
60000
25%
20000
Total
420000
Total
400000
Total
360000
Related Questions
drjack9650@gmail.com
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.