Fill in T-accounts and answer questions 1a & 1b

Use these Inventory T-accounts for Sunspot Beverages for June as directed in the requirements below. Note - These T accounts will not be complete until you reach requirement 5c of the project.

WIP-Blending					WIP-Bottling
Raw Material Inventory					Finished Goods Inventory
Bal 6/1 220,000					Bal 6/1 -0-
Bal 6/30 150,000					Bal 6/30 -0-

1. Accounting for added costs (journal entries and T accounts): Using the information on connect and above complete the following: Remember, Sunspot Company has TWO production departments; BLENDING department (process cost summary prepared on connect) and BOTTLING department (process cost summary will be prepared in 3 of the Project).

1. Include Junes beginning account balance for WIP-Blending and WIP-Bottling (totals from table in 1b) in the T accounts at the top of the project.

2. Raw material requests are made for direct material to the Blending Department, other direct material and Bottling for the Bottling Department. Write the journal entry to record the raw material requested and charged (added/incurred/used) to BOTH the departments during June. Note This can be written as one compound journal entry or as three separate journal entries (one for each cost category).

USE INFORMATION BELOW

Beginning # of units Ending # of units Units in WIP-Bottling Blending (connect) Factor (multiply) 62,000 1.20 72,000 0.80 Bottling 74,400 57,600 Blending Cost Category Costs in Beginning WIP-Bottling Blending Costs Factor Bottling Cost (connect) (multiply) Category N/A N/A Direct Material Costs Conversion Costs Total Costs N/A given value N/A given value 22,100 4 7,600 6 29,700 Blending Bottling Other DM Conversion Category Costs in Beginning WIP Use in 3a $ 90,000 45,000 88,400 45,600 163,700 b) Costs Added increases) to Bottling department: Include the amount from your Q8 "costs for units completed and transferred out as blending costs (transferred IN) in the far-right column. Use the direct material costs ADDED during June for the first department to calculate BOTH the Bottling costs and Other DM costs added in June for the second department-Bottling (use the respective "factors".) Use the conversion costs added in June for the first department (Blending Department) to calculate the conversion cost for the second department (Bottling Department) Blending Cost Category Costs Added/Incurred in WIP-Bottling Blending Costs Factor Cost Category (connect) (multiply) transferred OUT Direct Material Costs Direct Material Costs Conversion Costs N/A 237,100 237,100 160,880 WIP-Bottling Costs Incurred Use in 3a 379,440 284,520 569,040 546,992 1,779,992 Blending (trans IN) Bottling Other DM Conversion Total Costs Added/Incurred 1.2 2.4 3.4 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 Work in process, beginning Started into production Completed and transferred out Work in process, ending Percent Completed Units MaterialsConversion 62,000 70% 40% 316,000 306,000 72,000 75% 25% Materials Conversion Work in process, beginning $ 22,100 $ 7,600 Cost added during June $ 237,100 $ 160, 880 Calculate Blending Department's equivalent units of production for materials & conversion in June. Materials Conversion Equivalent units of production 360,000 324,000 Calculate the Blending Department's cost per equivalent unit for materials and conversion in June Materials Conversion Cost per equivalent unit $0.72 $0.52 Calculate the Blending Department's cost of ending work in process inventory for materials, conversion, and in total for June. Materials Conversion Total Cost of ending work in process inventory $38,880 $9,360 $48,240 Calculate the Blending Department's cost of units transferred out to the Bottling Department for materials, conversion, and in total for June. Materials Conversion Total Cost of units completed and transferred out $220,320 $159,120 $379,440 Blending Department Cost Reconciliation Costs to be accounted for: Cost of beginning work in process inventory $29,700 Costs added to production during the period 397,980 Total cost to be accounted for $427,680 Costs accounted for as follows: Cost of ending work in process inventory $48,240 Cost of units completed and transferred out 379,440 Total cost accounted for $427,680 Beginning # of units Ending # of units Units in WIP-Bottling Blending (connect) Factor (multiply) 62,000 1.20 72,000 0.80 Bottling 74,400 57,600 Blending Cost Category Costs in Beginning WIP-Bottling Blending Costs Factor Bottling Cost (connect) (multiply) Category N/A N/A Direct Material Costs Conversion Costs Total Costs N/A given value N/A given value 22,100 4 7,600 6 29,700 Blending Bottling Other DM Conversion Category Costs in Beginning WIP Use in 3a $ 90,000 45,000 88,400 45,600 163,700 b) Costs Added increases) to Bottling department: Include the amount from your Q8 "costs for units completed and transferred out as blending costs (transferred IN) in the far-right column. Use the direct material costs ADDED during June for the first department to calculate BOTH the Bottling costs and Other DM costs added in June for the second department-Bottling (use the respective "factors".) Use the conversion costs added in June for the first department (Blending Department) to calculate the conversion cost for the second department (Bottling Department) Blending Cost Category Costs Added/Incurred in WIP-Bottling Blending Costs Factor Cost Category (connect) (multiply) transferred OUT Direct Material Costs Direct Material Costs Conversion Costs N/A 237,100 237,100 160,880 WIP-Bottling Costs Incurred Use in 3a 379,440 284,520 569,040 546,992 1,779,992 Blending (trans IN) Bottling Other DM Conversion Total Costs Added/Incurred 1.2 2.4 3.4 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 Work in process, beginning Started into production Completed and transferred out Work in process, ending Percent Completed Units MaterialsConversion 62,000 70% 40% 316,000 306,000 72,000 75% 25% Materials Conversion Work in process, beginning $ 22,100 $ 7,600 Cost added during June $ 237,100 $ 160, 880 Calculate Blending Department's equivalent units of production for materials & conversion in June. Materials Conversion Equivalent units of production 360,000 324,000 Calculate the Blending Department's cost per equivalent unit for materials and conversion in June Materials Conversion Cost per equivalent unit $0.72 $0.52 Calculate the Blending Department's cost of ending work in process inventory for materials, conversion, and in total for June. Materials Conversion Total Cost of ending work in process inventory $38,880 $9,360 $48,240 Calculate the Blending Department's cost of units transferred out to the Bottling Department for materials, conversion, and in total for June. Materials Conversion Total Cost of units completed and transferred out $220,320 $159,120 $379,440 Blending Department Cost Reconciliation Costs to be accounted for: Cost of beginning work in process inventory $29,700 Costs added to production during the period 397,980 Total cost to be accounted for $427,680 Costs accounted for as follows: Cost of ending work in process inventory $48,240 Cost of units completed and transferred out 379,440 Total cost accounted for $427,680