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	72,000	70%	40%
Started into production	358,500
Completed and transferred out	348,500
Work in process, ending	82,000	75%	25%

	Materials		Conversion
Work in process, beginning	$	26,900	$	9,400
Cost added during June	$	288,800	$	200,930

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

	Materials Conversion Equivalent units of production

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

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

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

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

Answer:

Weighted-Average Method

1.	Equivalent units of production:
		Materials	Conversion
	Transferred to next department................................................	348500	348500
	Equivalent units in ending work in process inventory:
	Materials: 82000 units x 100% complete.............................	82000
	Conversion: 82000 units x 75% complete............................		61500
	Equivalent units of production................................................	430500	410000

2.	Cost per equivalent unit
		Materials	Conversion
	Cost of beginning work in process......................................	$ 26900	$ 9400
	Cost added during the period.............................................	288800	200930
	Total cost (a)........................................................................	$315700	$210330
	Equivalent units of production (b)......................................	430500	410000
	Cost per equivalent unit (a) ÷ (b)........................................	$0.73333333	$0.513

3. and 4.

	Assigning costs to units:
		Materials	Conversion	Total
	Ending work in process inventory:
	Equivalent units..................................	82000	61500
	Cost per equivalent unit......................	$0.733	$0.513
	Cost of ending work in process inventory.........................................................	$60133.33	$31549.5	$91682.83
	Units completed and transferred out:
	Units transferred to the next department	348500	348500
	Cost per equivalent unit......................	$0.73333333	$0.513
	Cost of units completed and transferred out....................................................	$255566.67	$178780.5	$434347.17

5.

	Cost reconciliation:
	Costs to be accounted for:
	Cost of beginning work in process inventory ($26900 + $9400).........................................................	$ 36300
	Costs added to production during the period ($288800 + $200930).....................................................	489730
	Total cost to be accounted for.............................................	$526030
	Costs accounted for as follows:
	Cost of ending work in process inventory...........................	$ 91682.83
	Cost of units completed and transferred out.......................	434347.17
	Total cost accounted for......................................................	$526030