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
	Units	Materials	Conversion
Work in process, beginning	68,000	70%	40%
Started into production	341,500
Completed and transferred out	331,500
Work in process, ending	78,000	75%	25%

	Materials		Conversion
Work in process, beginning	$	25,000	$	8,700
Cost added during June	$	267,500	$	184,350
Please explain how to do this. Thank you!

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.

1. Calculate the Blending Department's equivalent units of production for materials and conversion in June.

	Materials Conversion Equivalent units of production

2. Calculate the Blending Department's cost per equivalent unit for materials and conversion in June. (Round your answers to 2 decimal places.)

	Materials Conversion Cost per equivalent unit

3. Calculate the Blending Department's cost of ending work in process inventory for materials, conversion, and in total for June. (Round your intermediate calculations to 2 decimal places.)

	Materials Conversion Total Cost of ending work in process inventory

4. Calculate the Blending Department's cost of units transferred out to the Bottling Department for materials, conversion, and in total for June. (Round your intermediate calculations to 2 decimal places.)

	Materials Conversion Total Cost of units completed and transferred out

5. Prepare a cost reconciliation report for the Blending Department for June. (Round your intermediate calculations to 2 decimal places.)

	Blending Department Cost Reconciliation Costs to be accounted for: Total cost to be accounted for Costs accounted for as follows: Total cost accounted for

Answer 1

1) Equivalent unit :

	Whole unit	%	EUP-material	%	EUP-conversion
Units transferred out	331500	100%	331500	100%	331500
Ending work in process	78000	75%	58500	25%	19500
Total	409500		390000		351000

2) Calculate cost per equivalent unit:

	Material	Conversion
Beginning work in process	25000	8700
Cost added	267500	184350
Total cost	292500	193050
Equivalent unit	390000	351000
Cost per equivalent unit	0.75	0.55

3) Calculate cost of ending work in process

	Material	Conversion	Total
Cost of ending work in process	58500*.75 = 43875	19500*.55 = 10725	54600

4_) Calculate cost of units transferred out

	Material	Conversion	Total
Cost of units transferrred out	331500*.75 = 248625	331500*.55 = 182325	430950

5) Cost reconciliation :

Cost to be accounted for
Beginning work in process	33700
Cost added	451850
Total cost to be accounted for	485550
Cost accounted for as follows
Cost of units transferrred out	430950
Cost of ending work in process	54600
Total cost accounted for	485550