Reference no: EM131983654
Problem
Sunspot Beverages, Ltd., of Fiji 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 80,000 70% 40%
Started into production 392,500
Completed and transferred out 382,500
Work in process, ending 90,000 75% 25%
Materials Conversion
Work in process, beginning $ 31,500 $ 11,300
Cost added during June $ 337,500 $ 239,800
Required:
Assume that the company uses the weighted-average method.
1. Determine the equivalent units for June for the Blending Department.
2. Compute the costs per equivalent unit for the Blending Department.
3. Determine the total cost of ending work in process inventory and the total cost of units transferred to the Bottling Department.
4. Prepare a cost reconciliation report for the Blending Department for June.
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