Reference no: EM132711919
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 54,000 70% 40%
Started into production 282,000
Completed and transferred out 272,000
Work in process, ending 64,000 75% 25%
Materials Conversion
Work in process, beginning $18,300 $5,600
Cost added during June $196,100 $118,240
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 cost reconciliation report for the Blending Department for June.