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need help filling out the T-accounts and solving 1 a) b) and c) this is the info used to solve below Use Question 7 from
need help filling out the T-accounts and solving 1 a) b) and c)
Use Question 7 from HW3: (Ch 5 & 14) for Sunspot Beverages to complete the requirements for the project. Remember that Sunspot Beverages., Ltd of Fiji makes blended tropical fruit drinks in TWO stages (using TWO departments and TWO Work-in-Process inventory accounts). Fruit juices are extracted from fresh fruits and blended in the BLENDING Department. Once the product leaves the Blending Department, costs are transferred out of WIP-Blending and into WIP-Bottling. The Blending Department was analyzed in Question 7 of HW3 on CONNECT. Highlighted amounts provided as check figures. Use these Inventory T-accounts for Sunspot Beverages month of June as directed in the requirements below. WIP-Blending WIP-Bottling Raw Material Inventory Bal 6/1 120,000 Finished Goods Inventory -0- Bal 6/1 Bal 6/30 98,000 Bal 6/30 1) Accounting for first department: For the BLENDING Department: a) Use the information "given" in CONNECT and include the June beginning account balance for WIP-Blending in the T account above. b) Use the "given" information and your "results" from CONNECT to write the journal entries for the following transactions as the relate to the account WP-Blending during June. i) Direct Material requested and added to the Blending department during June. ii) Assume 45% of the Conversion costs are direct labor. Write the journal entry to record the wages for June in the Blending Department. iii) Write the journal entry to record the overhead applied to the Blending Department for June. Remember - Conversion costs are direct labor and overhead. iv) Write the journal entry to record the costs for the items completed and transferred out of Blending Department and moved/added to Bottling Department. This JE should DECREASE WIP-Blending account and INCREASE WIP-Bottling account. The dollar amount of this JE should be your answer in the 2-4 to last row in the table of requirement 5 on CONNECT. c) Post the journal entries from b) above to the T-accounts above. Determine the ending balance for WIP-Blending. The ending balance should equal the dollar value in the top row of requirement 3 in your CONNECT problem. Check that it does. 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 Materials Conversion 700 400 Work in process, beginning Started into production Completed and transferred out Work in process, ending Units 56,000 290,500 280,500 66,000 750 251 Work in process, beginning Cost added during June Materials Conversion $ 19,100 $ 5,900 $ 205,300 $ 124,780 Required 1 Required 2 Required 3 Required 4 Required 5 Calculate the Blending Department's equivalent units of production for materials and conversion in June. Materials Equivalent units of production Conversion 297,000 330,000 Required 1 Required 2 Required 3 Required 4 Required 5 Calculate the Blending Department's cost per equivalent unit for materials and conversion in June. (Round your answers to 2 decimal places.) Cost per equivalent unit Materials Conversion 0.68 $ 0.44 Required 1 Required 2 Required 3 Required 4 Required 5 Calculate the Blending Department's cost of ending work in process inventory for materials, conversion, and in total for June. (Round your intermediate calculations to 2 decimal places.) Materials Conversion Total Cost of ending work in process 33,660 $ 7,260 inventory 40,920 S Required 1 Required 2 Required 3 Required 4 Required 5 Calculate the Blending Department's cost of units transferred out to the Bottling Department for materials, conversion, and in total for June. (Round your intermediate calculations to 2 decimal places.) Materials Conversion Total Cost of units completed and transferred out $ 190,740 $ 123,420 $ 314,160 Required 1 Required 2 Required 3 Required 4 Required 5 Prepare a cost reconciliation report for the Blending Department for June. (Roun places.) Blending Department Cost Reconciliation Costs to be accounted for: Cost of beginning work in process inventory$ 25,000 Costs added to production during the period 330,080 Total cost to be accounted for $ 355,080 Costs accounted for as follows: Cost of ending work in process inventory $ 40,920 Cost of units completed and transferred out 314,160 Total cost accounted for $ 355,080 this is the info used to solve below
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