Sunspot Beverages, Ltd., of Fiji makes blended tropical fruit drinks in two stag

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.

Percent Completed

1.)

Determine the equivalent units for June for the Blending Department.

2.)

Compute the costs per equivalent unit for the Blending Department. (Round your answers to 2 decimal places.)

3.)

Determine the total cost of ending work in process inventory and the total cost of units transferred to the Bottling Department. (Round your intermediate calculations to 2 decimal places. Round your final answers to the nearest whole dollar.)

4.)

Prepare a cost reconciliation report for the Blending Department for June. (Round your intermediate calculations to 2 decimal places. Round your final answers to the nearest whole dollar.)

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.

Explanation / Answer

Beginning work in process 54,000 completed & transferred 272,000 Started during the year 282,000 Ending work inprocess 64,000 units to be accounted for 336,000 units accounted for 336,000 Equivalent units units % Materials % CC completed & transferred 272,000 100% 272,000 100% 272,000 Ending work inprocess 64,000 75% 48000 25% 16000 Equivalent units 320,000 288,000 cost per unit Materials CC total Beginning work in process 18,300 5,600 23,900 Cost added during the year 196,100 118,240 314,340 total cost 214,400 123,840 338,240 Equivalent units 320,000 288,000 cost per unit 0.67 0.43 1.1 total cost of ending work in process inventory Materials (48000*.67) 32160 conversion (16000*.43) 6880 total cost of ending work in process inventory 39040 total cost of units tranferred (272000*1.1) 299200 Cost Reconciliation Report Costs to be accounted Beginning wip 23,900 cost added during the year 314,240 total cost 338,140 cost acccounted for cost transferred during the year 299,200 ending work un process 39,040 total cost 338,240

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