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 Bottling Department. The following information pertains to the operations of the Blending Department for June. Percent Completed Materials Conversion 70% 40% Work in process, beginning Started into production Completed and transferred out Work in process, ending Units 48,000 256,500 246,500 58,000 75% 25% Work in process, beginning Cost added during June Materials Conversion $ 15,800 $ 5,000 $ 169,800 $ 107,230 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

Answer 1

1
	Materials	Conversion
Units completed and transferred out	246500	246500
Work in process, ending:
58000 X 75%	43500
58000 X 25%		14500
Equivalent units of production	290000	261000
2
	Materials	Conversion
Work in process, June 1	15800	5000
Cost added during June	169800	107230
Total costs	185600	112230
Divide by Equivalent units of production	290000	261000
Cost per Equivalent unit	0.64	0.43
3
	Materials	Conversion	Total
Work in process, ending units	43500	14500
X Cost per Equivalent unit	0.64	0.43
Cost of ending work in process inventory	27840	6235	34075
4
	Materials	Conversion	Total
Units completed and transferred out	246500	246500
X Cost per Equivalent unit	0.64	0.43
Cost of Units completed and transferred out	157760	105995	263755
5
Cost Reconciliation:
Cost to be accounted for:
Cost of Beginning work in Process inventory	20800
Cost added to production during June	277030
Total Cost to be accounted for	297830
Cost accounted for as follows:
Cost of Units completed and transferred out	263755
Cost of ending work in process inventory	34075
Total Cost accounted for	297830