Exercise 4A-5 (Algo) Computation of Equivalent Units of Production-FIFO Method [LO4-6]

MediSecure, Incorporated, uses the FIFO method of process costing. It produces clear plastic containers for pharmacies in a process that starts in the Molding Department. Data concerning that departments operations in the most recent period appear below:

Beginning work in process:
Units in process	580
Completion with respect to materials	73%
Completion with respect to conversion	31%
Units started into production during the month	154,600
Units completed and transferred out	154,680
Ending work in process:
Units in process	500
Completion with respect to materials	75%
Completion with respect to conversion	17%

Required:

Compute the Molding Department's equivalent units of production for materials and conversion for the period.

Note: Round your intermediate and final answers to the nearest whole number.

Problem 4A-11 (Static) Equivalent Units of Production; Cost per Equivalent Unit; Assigning Costs-FIFO Method [LO4-6, LO4-7, LO4-8, LO4-9]

Sunspot Beverages, Limited, of Fiji uses the FIFO method of process costing. 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 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	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:

For June:

1. Compute the Blending Department's equivalent units of production for materials and conversion.
2. Compute the Blending Department's cost per equivalent unit for materials and conversion.
3. Calculate the Blending Department's cost of ending work in process inventory for materials, conversion, and in total.
4. Calculate the Blending Department's cost of units transferred out to the next department for materials, conversion, and in total.
5. Prepare a cost reconciliation report for the Blending Department.