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.

 

  Units Percent Completed
Materials Conversion
Work in process, beginning 20,000 100% 75%
Started into production 180,000    
Completed and transferred out 160,000    
Work in process, ending 40,000 100% 25%

 

  Materials Conversion
Work in process, beginning $ 25,200 $ 24,800
Cost added during June $ 334,800 $ 238,700

 

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.

Expert Solution
Check Mark
Step 1

Formula :

Cost per equivalent unit = Cost / Equivalent unit

 

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