Question

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 120,000 55?

Answer 1

The question refers to process costing using the weighted-average method by Sunspot Beverages, Limited in Fiji for producing fruit drinks, where costs of materials are determined by multiplying the quantity by the price per item.

Step-by-step explanation:

The question pertains to a business scenario where Sunspot Beverages, Limited, a company located in Fiji, uses the weighted-average method in its process costing system for the production of blended tropical fruit drinks. This system tracks and allocates the costs of raw materials and conversion costs throughout the blending process of juice production. To compute the amount spent on each fruit, which is part of the materials cost, you would multiply the quantity by the price of the fruit. For example, if apples cost 50 cents each and the company buys 10, they spend $5.00 on apples. This same approach is used for all ingredients in the blending department, contributing to the calculation of the process costing.