Sunspot Beverages, Limited, of Fiji uses the weighted-average method of process costing. 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 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 Required 1 Required 2 Units 64,000 324,500 314,500 74,000 Required 3 valent units of production Materials $ 23,000 $ 247,100 Complete this question by entering your answers in the tabs below. Required: or June: . Calculate the Blending Department's equivalent units of production for materials and conversion. . Calculate the Blending Department's cost per equivalent unit for materials and conversion. Calculate the Blending Department's cost of ending work in process inventory for materials, conversion, and in total. Calculate the Blending Department's cost of units transferred out to the Bottling Department for materials, conversion, and in total. Prepare a cost reconciliation report for the Blending Department. Required 4 Materials Percent Completed Materials 70% 758 Conversion $ 7,900 $ 168,590 < Required 1 Conversion Required 5 alculate the Blending Department's equivalent units of production for materials and conversion in June. Conversion 40% 25% Required 2 >
Sunspot Beverages, Limited, of Fiji uses the weighted-average method of process costing. 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 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 Required 1 Required 2 Units 64,000 324,500 314,500 74,000 Required 3 valent units of production Materials $ 23,000 $ 247,100 Complete this question by entering your answers in the tabs below. Required: or June: . Calculate the Blending Department's equivalent units of production for materials and conversion. . Calculate the Blending Department's cost per equivalent unit for materials and conversion. Calculate the Blending Department's cost of ending work in process inventory for materials, conversion, and in total. Calculate the Blending Department's cost of units transferred out to the Bottling Department for materials, conversion, and in total. Prepare a cost reconciliation report for the Blending Department. Required 4 Materials Percent Completed Materials 70% 758 Conversion $ 7,900 $ 168,590 < Required 1 Conversion Required 5 alculate the Blending Department's equivalent units of production for materials and conversion in June. Conversion 40% 25% Required 2 >
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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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Transcribed Image Text:Sunspot Beverages, Limited, of Fiji uses the weighted-average method of process costing. 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
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
64,000
324,500
314,500
74,000
Materials
$ 23,000
$ 247,100
Equivalent units of production
Materials
Percent Completed
Materials
70%
Complete this question by entering your answers in the tabs below.
75%
Conversion
$ 7,900
$ 168,590
Required:
For June:
1. Calculate the Blending Department's
equivalent units of production for materials and conversion.
2. Calculate the Blending Department's cost per equivalent unit for materials and conversion.
3. Calculate the Blending Department's cost of ending work in process inventory for materials, conversion, and in total.
4. Calculate the Blending Department's cost of units transferred out to the Bottling Department for materials, conversion, and in
total.
5. Prepare a cost reconciliation report for the Blending Department.
Required 1 Required 2 Required 3 Required 4 Required 5
< Required 1
Conversion
Calculate the Blending Department's equivalent units of production for materials and conversion in June.
Conversion
40%
25%
Required 2 >
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