Fanning Cola Corporation produces a new soft drink brand, Sweet Spring, using two production departments mixing and bottling Fannings beginning balances and data pertinent to the mixing departments activities for Year 2 follow Accounts Beginning Balances Cash $ 41,700 Raw materials inventory 14,600 Production supplies 100 Work in process inventory (440,000 units) 52,800 Common stock $ 109,200 Fanning Cola issued additional common stock for $56,000 cash The company purchased raw materials and production supplies for $43,250 and $700, respectively, in cash The company issued $45,700 of raw materials to the mixing department for the production of 500,000 units of Sweet Spring that were started in Year 2 A unit of soft drink is the amount needed to fill a bottle The mixing department used 2,100 hours of labor during Year 2, consisting of 1,900 hours for direct labor and 200 hours for indirect labor The average wage was $9 50 per hour All wages were paid in Year 2 in cash The predetermined overhead rate was $1 50 per direct labor hour Actual overhead costs other than indirect materials and indirect labor for the year amounted to $700, which was paid in cash The mixing department completed 700,000 units of Sweet Spring The remaining inventory was 40 percent complete The completed soft drink was transferred to the bottling department The ending balance in the Production Supplies account was $550 Required Determine the number of equivalent units of production Determine the product cost per equivalent unit Calculate the total cost allocated between the ending work in process inventory and units transferred to the bottling department Record the transactions in T accounts Complete this question by entering your answers in the tabs below Req A and B ReqC Reg D Determine the number of equivalent units of production Determine the product cost per equivalent unit (Round Cost per equivalent unit answer to 2 decimal places ) a Equivalent units b Cost per equivalent unit Complete this question by entering your answers in the tabs below Req A and B ReqC Reg D Calculate the total cost allocated between the ending work in process inventory and units transferred to the bottling department (Round intermediate calculations to 2 decimal places ) Cost Allocation To the bottling department To ending work in process inventory Total allocated cost $ Req A and B Reg C Reg D Record the transactions in T accounts (The cash expenditures in events No 2 and No 4 should be combined into a single amount in the cash account for each event Round intermediate calculations to 2 decimal places ) Cash Raw Materials Beg bal Beg bal End, bal End bal Work in process Mixing Work in process Bottling Beg bal Beg bal End, bal End, bal Manufacturing Overhead Production Supplies Beg bal Beg bal End bal End, bal Common Stock Beg bal End, bal

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Fanning Cola Corporation produces a new soft drink brand, Sweet Spring, using two production departments: mixing and bottling. Fannings beginning balances and data pertinent to

Fanning Cola Corporation produces a new soft drink brand, Sweet Spring, using two production departments: mixing and bottling. Fannings beginning balances and data pertinent to the mixing departments activities for Year 2 follow:

Accounts	Beginning Balances
Cash	$	41,700
Raw materials inventory		14,600
Production supplies		100
Work in process inventory (440,000 units)		52,800
Common stock	$	109,200

Fanning Cola issued additional common stock for $56,000 cash.
The company purchased raw materials and production supplies for $43,250 and $700, respectively, in cash.
The company issued $45,700 of raw materials to the mixing department for the production of 500,000 units of Sweet Spring that were started in Year 2. A unit of soft drink is the amount needed to fill a bottle.
The mixing department used 2,100 hours of labor during Year 2, consisting of 1,900 hours for direct labor and 200 hours for indirect labor. The average wage was $9.50 per hour. All wages were paid in Year 2 in cash.
The predetermined overhead rate was $1.50 per direct labor hour.
Actual overhead costs other than indirect materials and indirect labor for the year amounted to $700, which was paid in cash.
The mixing department completed 700,000 units of Sweet Spring. The remaining inventory was 40 percent complete.
The completed soft drink was transferred to the bottling department.
The ending balance in the Production Supplies account was $550.

Required

Determine the number of equivalent units of production.
Determine the product cost per equivalent unit.
Calculate the total cost allocated between the ending work in process inventory and units transferred to the bottling department.
Record the transactions in T-accounts.

image text in transcribed

Complete this question by entering your answers in the tabs below. Req A and B ReqC Reg D Determine the number of equivalent units of production. Determine the product cost per equivalent unit. (Round "Cost per equivalent unit" answer to 2 decimal places.) a. Equivalent units b. Cost per equivalent unit Complete this question by entering your answers in the tabs below. Req A and B ReqC Reg D Calculate the total cost allocated between the ending work in process inventory and units transferred to the bottling department. (Round intermediate calculations to 2 decimal places.) Cost Allocation To the bottling department To ending work-in-process inventory Total allocated cost $ Req A and B Reg C Reg D Record the transactions in T-accounts. (The cash expenditures in events No. 2 and No. 4 should be combined into a single amount in the cash account for each event. Round intermediate calculations to 2 decimal places.) Cash Raw Materials Beg bal Beg. bal. End, bal End. bal. Work in process Mixing Work in process Bottling Beg bal. Beg. bal. End, bal. End, bal. Manufacturing Overhead Production Supplies Beg. bal Beg. bal. End. bal. End, bal. Common Stock Beg. bal End, bal.