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. Work in process, beginning Started into production Completed and transferred out Work in process, ending Work in process, beginning Cost added during June Percent Completed Materials Conversion 40% Units 102,000 70% 486,000 476,000 112,000 Materials $ 42,500 $ 455,900 Cost of units completed and transferred out 75% Conversion $ 15,600 $ 332,160 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. 25% Complete this question by entering your answers in the tabs below. < Required 3 Required 1 Required 2 Required 3 Required 4 Required 5 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 Required 5 > Total
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. Work in process, beginning Started into production Completed and transferred out Work in process, ending Work in process, beginning Cost added during June Percent Completed Materials Conversion 40% Units 102,000 70% 486,000 476,000 112,000 Materials $ 42,500 $ 455,900 Cost of units completed and transferred out 75% Conversion $ 15,600 $ 332,160 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. 25% Complete this question by entering your answers in the tabs below. < Required 3 Required 1 Required 2 Required 3 Required 4 Required 5 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 Required 5 > Total
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Concept explainers
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.
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am. 109.
Transcribed Image Text: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.
Work in process, beginning
Started into production
Completed and transferred out
Work in process, ending
Work in process, beginning
Cost added during June
Units
102,000
486,000
476,000
112,000
Percent Completed
Materials Conversion
70%
40%
Materials
$ 42,500
$ 455,900
Cost of units completed and transferred out
75%
Conversion
$ 15,600
$ 332,160
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.
25%
Complete this question by entering your answers in the tabs below.
< Required 3
Required 1 Required 2 Required 3 Required 4 Required 5
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
Required 5 >
Total
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