Question

Beverages, Ltd., 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 Percent Completed Units Materials Conversion Work in process, beginning Started into production Completed and transferred out Work in process, ending 58,000 299,000 289,000 68,000 70% 40% 75 % 25% Work in process, beginnin Cost added during June Materials Conversion $ 20,0006,200 $214,600 131,500

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

Answer 1

Step-by-step explanation:

1

Units %Material

Units completed & Transferred 289,000 100 289,000

Units of ending WIP 68,000 75 51,000

Equivalent units of production 340,000

% Conversion EUP Conversion

Units completed & transferred out 100 289,000

Units of ending WIP 25 17,000

Equivalent units of production 306,000

2

Material Conversion

Beginning WIP 20,000 6,200

Added cost in June 214,600 131,500

Total 234,600 137,700

Equivalent unit of production 340,000 306,000

Cost /equivalent unit 0.69 0.45

3

EUP Cost/ EUP Total

Material 51,000 0.69 35,190

Conversion 17,000 0.45 7,650

Total cost of ending WIP 42,840

for materials ,conversion

4

EUP Cost / EUP Total

Material 289,000 0.69 199,410

Conversion 289,000 0.45 130,050

Total cost of units transferred out 329,460

5

Reconciliation report

Cost of beginning WIP 20,000 6,200 26,200

Cost added in the month 214,600 131,500 346,100

Total 372,300

Cost of units transferred out 329,460

Cost of ending WIP 42,840

Total 372,300