Sunspot Beverages Ltd of Fij uses the weightedaverage method

Sunspot Beverages, Ltd, of Fij uses the weighted-average method in ts process costing system It makes osting system. It makes blended tropical fruit drinks 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 o Department for June. Percent Completed Work in process, beginning 56,080 Started into production Completed and transferred out 280,580 Work in process, ending Units Materials Conversion 290,500 66,000 75% 40% 25% Materials Conversion Work in process, beginning $ 19,100 5,900 Cost added during June $205,300 $124,780 Required: 1. Calculate the Blending Deparment\'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 J Calculate the Blending Department\'s cost of ending work in process inventory for materials, conversion, and in total for June 4. Colculate 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

Solution

UNITS TO ACCOUNT FOR: Beginning Work in Process units 56,000 Add: Units Started in Process 290,500 Total Units to account for: 346,500 UNITS TO BE ACCOUNTED FOR: Units started and completed 280,500 Ending Work in Process 66,000 Total Units to be accounted for: 346,500 Equivalent Units: Material Cost Conversion % Completion Units % Completion Units Units started and completed 100% 280,500 100% 280,500 Ending Work in Process 75% 49,500 25% 16,500 Total Equivalent units 330,000 297,000 TOTAL COST TO ACCOUNT FOR: Material Conversion Beginning work in Process 19,100 5,900 Cost Added during May 205,300 124,780 Total Cost to account for: 224,400 130,680 Total Cost to account for: 355,080 COST PER EQUIVALENT UNIT: Material Conversion Total cost added during the year 224,400 130,680 Equivalent Units 330,000 297,000 Cost per Equivalent unit 0.68 0.44 TOTAL COST ACCOUNTED FOR: Units started and Transferred out (280500 units) Equivalent unit Cost per EU Total Cost Material 280,500 0.68 190740 Conversion Cost 280,500 0.44 123420 Total Cost of Units completed and transferred out: 314160 Ending Work in process (66000 units) Equivalent unit Cost per EU Total Cost Material 49,500 0.68 33660 Conversison Cost 16,500 0.44 7260 Total cost of Ending Work in process: 40,920 Req a: Material Conversion Equivalent units 330000 297000 Req b: Material Conversion Cost per equivalent unit 0.68 0.44 Rreq c: Material Conversion Total Ending WIP 33660 7260 40920 Req d: Material Conversion Total Units completed and transferred 190740 123,420 314160 Req e: Cost reconciliation: Cost to be accounted for: Cost of beginning WIP 25,000 Current cost added 330,080 Total cost to be accounted for 355,080 Cost accouunted for: Cost of Units compelted and transferred 314160 Cost fo ending WIP 40920 Total cost acountedfor 355,080