ACC 1820 Project 3 (Ch 4,13) Name Use Question 7 from HWS for Sunspot Beverages

Question

ACC 1820 Project 3 (Ch 4,13) Name Use Question 7 from HWS for Sunspot Beverages to complete the requirements for the project. Remember that Sunspot Beverages, Ltd of Fiji makes blended tropical fruit drinks in TWO stages (using TWO departments and TWO Work-in-Process inventory accounts). Fruit juices are extracted from fresh fruits and blended in the BLENDING Department. The Blending Department was analyzed in Question 7 of the HW5 on CONNECT amounts provided as check figures. 1) (7points) For the BLENDING Department a) Use the information "given" in CONNECT and determine the account balance of the account WIP-Blending at the beginning of June? b) Use the "given" information and your "results" from CONNECT to write the journal entries for the following transactions as the relate to the account WP-Blending during June. i) Direct Material requested and added to the department during June. ii) Assume 45% of the wages for June in the Blending Department. are direct labor. Write the journal entry to record the ili) Write the journal entry to record the overhead applied to the Blending Department for June. Remember-Conversion costs are direct labor and overhead. iv) Write the journal entry to record the costs for the items completed and transferred out of Blending Department and moved/added to Bottling Department. This JE should DECREASE WIP-Blending account and INCREASE WIP-Bottling account Post the information from a) an b) above to the T-accounts (Raw Material Inventory and WIP- Blending) provided at the end of the Project. Determine the ending balance. The ending balance should equal the dollar value in the top row of requirement 3 in your CONNECT problem. Check that it does. c)

Explanation / Answer

1. (a) Account balance in WIP - Blending at the beginning of June = $17,400

This consists of : Material = $13,500 and Conversion = $3,900.

  

Question 1 (b)(i) Direct material added to blending department Date Account Title Debit credit June.30 WIP - Blending 145100 Raw material 145100 Question 1 (b)(ii) Wages added to the blending department Date Account Title Debit credit June.30 WIP - Blending 37206 Wages Expense 37206 (45% of $82,680) Question 1 (b)(iii) Overheads applied to blending department Date Account Title Debit credit June.30 WIP - Blending 45474 Manufacturing overhead 45474 (55% of $82,680) Question 1 (b)(iv) Cost of the items completed and transferred to Bottling department Date Account Title Debit credit June.30 WIP - Botling 178360 WIP - Blending 178360

Related Questions

Navigate

• Browse (All)
• Browse A
• Subjects

---

---

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