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 Botting Department. The following information pertains to the operations of the Blending Department for June Percent Work in process, beginning Started into production Completed and transferred out Work in Units Materials Conversion 102,000 70% 486,000 476,000 112,000 75% 4% endi 25% Work in process, beginning Cost added during June Materials Conversion 42,500 S 15,600 455,900 $ 332,160 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, conversion, and in total for June. 5. Prepare a cost reconciliation report for the Blending Department for June. Complete this question by entering your answers in the tabs below Required 1 Required 2 Required 3 Required 4 Required 5 Calculate the Blending Department's equivalent units of production for materials and conversion in June Materials Conversion Equivalent units of production

Explanation / Answer

UNITS TO ACCOUNT FOR: Beginning Work in Process units 102,000 Add: Units Started in Process 486,000 Total Units to account for: 588,000 UNITS TO BE ACCOUNTED FOR: Units started and completed 476,000 Ending Work in Process 112,000 Total Units to be accounted for: 588,000 Equivalent Units: Material Cost Conversion % Completion Units % Completion Units Units started and completed 100% 476,000 100% 476,000 Ending Work in Process 75% 84,000 25% 28,000 Total Equivalent units 560,000 504,000 TOTAL COST TO ACCOUNT FOR: Material Conversion Beginning work in Process 42,500 15,600 Cost Added during May 455,900 332,160 Total Cost to account for: 498,400 347,760 Total Cost to account for: 846,160 COST PER EQUIVALENT UNIT: Material Conversion Total cost added during the year 498,400 347,760 Equivalent Units 560,000 504,000 Cost per Equivalent unit 0.89 0.69 TOTAL COST ACCOUNTED FOR: Units started and Transferred out (476000 units) Equivalent unit Cost per EU Total Cost Material 476,000 0.89 423640 Conversion Cost 476,000 0.69 328440 Total Cost of Units completed and transferred out: 752080 Ending Work in process (112,000 units) Equivalent unit Cost per EU Total Cost Material 84,000 0.89 74760 Conversison Cost 28,000 0.69 19320 Total cost of Ending Work in process: 94,080 Req 1. Material Conversion Equivalent units 560000 504000 Req 2. Material Conversion Cost per Equivalent unit 0.89 0.69 Req 3. Ending WIP inventory $ 94080 Req 4. Cost of Units transferred out:   $ 752080 Req 5. Reconcialiation Statement: Cost to be accounted for: Cost of Beginning WIP 58100 Current manufacturing cost 788060 Total cost to be accounted for 846160 Cost accounted for: Cost of Units transferred out 752080 Cost of Ending WIP inventory 94080 Total cost accounted for 846160 Difference nil

Related Questions

Navigate

• Browse (All)
• Browse S
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.