Sunspot Beverages, Limited, 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. Units Percent Completed Materials Conversion Work in process, beginning 58,000 70% 40% Started into production 299,000 Completed and transferred out 289,000 Work in process, ending 68,000 75% 25% Materials Conversion Work in process, beginning $ 20,000 $ 6,200 Cost added during June $ 214,600 $ 131,500 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.
Process Costing
Process costing is a sort of operation costing which is employed to determine the value of a product at each process or stage of producing process, applicable where goods produced from a series of continuous operations or procedure.
Job Costing
Job costing is adhesive costs of each and every job involved in the production processes. It is an accounting measure. It is a method which determines the cost of specific jobs, which are performed according to the consumer’s specifications. Job costing is possible only in businesses where the production is done as per the customer’s requirement. For example, some customers order to manufacture furniture as per their needs.
ABC Costing
Cost Accounting is a form of managerial accounting that helps the company in assessing the total variable cost so as to compute the cost of production. Cost accounting is generally used by the management so as to ensure better decision-making. In comparison to financial accounting, cost accounting has to follow a set standard ad can be used flexibly by the management as per their needs. The types of Cost Accounting include – Lean Accounting, Standard Costing, Marginal Costing and Activity Based Costing.
I need the full question answered, all 5 parts, no short cut please! I already spent several questions to get the hang of how your system works.
Sunspot Beverages, Limited, of Fiji uses the weighted-average method in its
| Units | Percent Completed | ||
|---|---|---|---|
| Materials | Conversion | ||
| Work in process, beginning | 58,000 | 70% | 40% |
| Started into production | 299,000 | ||
| Completed and transferred out | 289,000 | ||
| Work in process, ending | 68,000 | 75% | 25% |
| Materials | Conversion | |
|---|---|---|
| Work in process, beginning | $ 20,000 | $ 6,200 |
| Cost added during June | $ 214,600 | $ 131,500 |
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.
I need the full question answered, all 5 parts.
I need the full question answered, all 5 parts.
Weighted Average Method :— Under this method, equivalent units is calculated using units transferred out and ending work in process inventory.
Equivalent units = Units × Stage of completion
Stage of completion of units transferred out is 100%.
After calculating equivalent units.
Total cost is added to calculate cost per equivalent units. It is calculated by dividing total cost by equivalent units.
This cost per equivalent units is used to allocate the cost between material and conversion.
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