Please show step to step for (#1-5) thank you. Sunspot Beverages, Ltd., of Fiji
ID: 2337364 • Letter: P
Question
Please show step to step for (#1-5) thank you.
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.
1. Compute the Blending Department's equivalent units of production for materials and conversion for June.
2. Compute the Blending Department's cost per equivalent unit for materials and conversion for 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 next department for materials, conversion, and in total for June
5. Prepare a cost reconciliation report for the Blending Department for June.
Percent Completed Units 20,000 180,000 160,000 40,000 Materials Conversion Work in process, beginning Started into production Completed and transferred out Work in process, ending 100% 75% 100% 258 Materials Conversion Work in process, beginning25,200 24,800 $ 334,800 238,700 Cost added during JuneExplanation / Answer
Beginning work in process 20,000 Completed & transferred 160,000 started during the year 180,000 Ending work in process 40,000 units to account for 200,000 units accounted for 200,000 1) Equivalent units of production units %mat Materials %CC CC Completed & transferred 160,000 100% 160,000 100% 160,000 Ending work in process 40,000 100% 40,000 25% 10,000 Equilvalent units of production 200,000 170,000 answer 2) Cost per Equivalent units Materials CC total work in process,beginning 25,200 24,800 50,000 cost added during June 334,800 238,700 573,500 tota cost (A) 360,000 263,500 623,500 Equivalent units (B) 200,000 170,000 cost per unit c=a/b 1.8 1.55 3.35 answer 3) Cost of ending work in process Materials (40,000*1.8) 72000 CC (10000*1.55) 15500 total cost of Ending work in process 87500 4) Cost of units transferred out Materials (160,000*1.8) 288000 CC (160,000*1.55) 248000 Cost of units transferred out 536000 5) Cost Reconciliation Report cost to be accounted Beginning work in process 50,000 cost added during the year 573,500 cost to be accounted 623,500 cost accounted for cost of ending work in process 87500 cost of units transferred out 536000 cost accounted for 623500