FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Sunspot Beverages, Limited, 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 Bottling Department. The following information pertains to the operations of the Blending
Department for June.
Work in process, beginning
Started into production
Completed and transferred out
Work in process, ending
Work in process, beginning
Cost added during June
Units
66,000
333,000
323,000
76,000
Materials
Percent Completed
Materials
70%
$ 24,000
$ 257, 200
75%
Conversion
40%
Conversion
$ 8,300
$ 176,380
25%
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.
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Transcribed Image Text:Sunspot Beverages, Limited, 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 Bottling Department. The following information pertains to the operations of the Blending Department for June. Work in process, beginning Started into production Completed and transferred out Work in process, ending Work in process, beginning Cost added during June Units 66,000 333,000 323,000 76,000 Materials Percent Completed Materials 70% $ 24,000 $ 257, 200 75% Conversion 40% Conversion $ 8,300 $ 176,380 25% 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.
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