Sunspot Beverages, Ltd., of FiJi uses the weighted-average method in Iits process costing system. It makes blended tropical fruit drinks in two stages. Fruit julces 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 Materials Conversion Work in process, beginning Started into production Completed and transferred out Work in process, ending Units 184,000 494,500 484,500 114,000 70% 40% 75% 25% Materials Conversion Work in process, beginning Cost added during June 44, 300 $ 16,300 $ 474,400 $ 347,930 Requlred: 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 materlals, 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. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Required 5 Calculate the Blending Department's cost of ending work in process inventory for materials, conversion, and in total for June. (Round your intermediate calculations to 2 decimal places.) Materials Conversion Total Cost of ending work in process inventory
Sunspot Beverages, Ltd., of FiJi uses the weighted-average method in Iits process costing system. It makes blended tropical fruit drinks in two stages. Fruit julces 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 Materials Conversion Work in process, beginning Started into production Completed and transferred out Work in process, ending Units 184,000 494,500 484,500 114,000 70% 40% 75% 25% Materials Conversion Work in process, beginning Cost added during June 44, 300 $ 16,300 $ 474,400 $ 347,930 Requlred: 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 materlals, 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. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Required 5 Calculate the Blending Department's cost of ending work in process inventory for materials, conversion, and in total for June. (Round your intermediate calculations to 2 decimal places.) Materials Conversion Total Cost of ending work in process inventory
Chapter1: Financial Statements And Business Decisions
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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, Ltd. - Blending Department Costing for June**
Sunspot Beverages, Ltd., located in Fiji, utilizes the weighted-average method in its process costing system to produce blended tropical fruit drinks. The production process involves two primary stages: fruit juice extraction and blending in the Blending Department, followed by bottling and packaging in the Bottling Department. Below are the specifics of the Blending Department's operations for June:
### Production Data for June
**Stages of Completion:**
- **Work in process, beginning**: 104,000 units (70% for materials, 40% for conversion)
- **Started into production**: 494,500 units
- **Completed and transferred out**: 484,500 units
- **Work in process, ending**: 114,000 units (75% for materials, 25% for conversion)
### Cost Data for June
- **Materials Cost:**
- Work in process, beginning: $44,300
- Cost added during June: $474,400
- **Conversion Cost:**
- Work in process, beginning: $16,300
- Cost added during June: $347,930
### Calculations 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.**
### Interactive Section
Engage with the practical application of these calculations by entering your responses into the provided interactive tabs:
- **Required 1**: Equivalent units of production
- **Required 2**: Cost per equivalent unit
- **Required 3**: Cost of ending work in process inventory
- **Required 4**: Cost of units transferred out
- **Required 5**: Cost reconciliation report
**Note**: When completing the calculations, round intermediate values to two decimal places to maintain accuracy.
By understanding the detailed steps of production and cost allocation at Sunspot Beverages, Ltd., students can
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