Sunspot 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 20,000 100% 75%
Started into production 180,000
Completed and transferred out 160,000
Work in process, ending 40,000 100% 25%
Materials Conversion
Work in process, beginning $25,200 $24,800
Cost added during June $334,800 $238,700
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.

Sunspot Beverages, Ltd.

Blending Department

1. Equivalent units of production:

                                                        Units      Materials    Conversion

Completed and transferred out 160,000     160,000       160,000

Work in process, ending              40,000      40,000          10,000

Total equivalent units                                   200,000       170,000

2. Cost per equivalent unit:

                                                      Materials    Conversion

Total cost of production             $360,000     $263,500

Total equivalent units                   200,000        170,000

Cost per equivalent unit             $1.80            $1.55

3 & 4. Cost assigned to:

                                                       Units    Materials   Conversion   Total

Completed and transferred out 160,000 $288,000   $248,000  $476,000

Work in process, ending              40,000      72,000        15,500       87,500

Total costs assigned                                 $360,000   $263,500  $623,500

5. Cost Reconciliation Report:

                                                      Materials    Conversion     Total

Work in process, beginning          $25,200       $24,800     $50,000

Cost added during June             $334,800     $238,700     573,500

Total cost of production             $360,000     $263,500  $623,500

Completed and transferred out $288,000    $248,000   $476,000

Work in process, ending                 72,000         15,500        87,500

Total costs assigned                  $360,000    $263,500   $623,500

Explanation:

a) Data and Calculations:

Percent Completed

                                                        Units      Materials    Conversion

Work in process, beginning         20,000       100%           75%

Started into production               180,000

Completed and transferred out 160,000

Work in process, ending              40,000       100%           25%

                                                      Materials    Conversion

Work in process, beginning          $25,200       $24,800

Cost added during June             $334,800     $238,700

Total cost of production             $360,000     $263,500