Answered step by step
Verified Expert Solution
Question
1 Approved Answer
need help solving 3 a) b) c) d) using the following info below information for 2nd department units data bottling below is question 3 a)
need help solving 3 a) b) c) d) using the following info below
information for 2nd department units data bottling
below is question 3 a) b) c) and d) that needs to be solved
blending department data
i am... only have 1 question posted..
cstion/ from HW3: (Ch 5 & 14) for Sunspot Beverages to complete the requirements for the project. Remember that Sunspot Beverages.. Lad 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 Bul 6/1 $35.000 |8314, 160 WIP WAP Berly Malgrat $205,300 Bixho 314.160 Labor $56.151 $68.629 Pull 6730 907020 overhead Finished Goods Inventory Bal 6/1 Raw Material Inventory Bal 6/1 120,000 2051300 WIP Purdase $183,300 Blody Bal 6/30 98,000 Bal 6/30 -0- 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. WIP Bleiding DR CR Raw Material inventory 520520 205,300 ii) Assume 45% of the Conversion costs are direct labor. Write the journal entry to record the wages for Junc in the Blending Department. DR $56.151 WIP blendry Fachry Payd/ wages Pyde R56151 iii) Write the journal entry to record the overhead applied to the Blending Department for June Remember - Conversion costs are direct labor and overhead $681624 WIR Blodry CR $68.629 Muutacturing overnand iv) Write the journal entry to record the costs for the items completed and transferred out of Blending Department and moved/added to Bottling Department. This JE should DECREASE WIP-Blending account and INCREASE WIP-Bottling account. The dollar amount of this JE should be your answer in the 2 to last row in the table of requirements on CONNECT WIP Botthy DR 83141160 WIP-Bledy R$ 314168 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. Information for Second Department: The requirements below relate to June activity in the SECOND department, (BOTTLING Department, the department AFTER Blending that was analyzed on CONNECT). In the Bottling department, the juice is portioned into bottles and packaged into cartons for shipping. The Bottling department uses Direct Material (the bottles) at the beginning of the process, while other materials and conversion costs are added evenly throughout rest of the process. Hint: You can treat the bottles as a separate cost category from the other material. The Bottling department will have a total of 4 cost categories: Bottles, Other Material, Conversion and "Blending or Transferred in costs. The items in beginning Work-in-Process - Bottling Department included $55,000 of Transferred In costs, S111,000 of Bottle Costs, $18,000 of Other Material Costs and $80,500 of conversion costs. The transferred in costs are costs that were incurred during the Blending Process before items were brought to Bottling. These items are complete with respect to the Blending process BUT NOT complete with respect to bottling process. You will now analyze the Bottling Department activity for the month of June. The following information pertains to the operations of the Bottling Department for the month of June. Percent Complete for Bottling Department units Other Material 44,000 50% Conversion 40% 50% Work in process, beginning Work in process, ending 52,000 65% 2) Accounting for second department: Answer the following relating to the account WIP-Bottling a) Using the information provided above, what is beginning balance in the WIP-Bottling account? 5.264.500 Include the balance appropriately in the T-account for WIP Bottling below. WIP Bottir Bal (18264,500 Bottles $701,250 Other soforell $102650 convosna B1836 b) The Bouling Department requisitions bottles and other material" (raw material) throughout the month from Raw Material Inventory. i) Assume the cost of the bottles added to the Bottling Department is $2.50 per unit transferred from Blending. Calculate the cost of bottles added to the department. (Bottle Costs #of units transferred in x $2.50) 701,250 280,500 x 2.50 31 ii) Assume "Other Material is requisition for the Bottling department was half the material costs added to Blending department (CONNECT) bottling costs from Raw Material Inventory. Calculate the cost of "Other Materials" 1/2x205,300 = 1021650 ) Write the summary journal entry to record the requisition of direct material (Bottles AND Other Material) for the Bottling department during June WE PBottlery DR 7011250 Raw Netvid no. WIP Bottlry DR Raw Mate che iv) Post the Je to the T-account for WIP-Bottling above. CR 7011260 102,050 ach 102.65 c) Assume Conversion costs added to the Bottling department during June is three times the conversion costs added (3 times) to the Blending department during June (from CONNECT) and consist of 40% direct labor and the rest overhead. Write the summary journal entry to record the added conversion costs to WIP-Bottling. Post the JE to the Taccount for WIP-Bottling above. 56,151 +68,029 =124, 780 overhead = 1374,340-149,736) 3X1241780 = 374,340-Corvosh cest 3 40% of 374,340= 149.736 = 224,604 Dietibor 3) Process costing of second department: Follow the steps below to perform the costing analysis for the Bottling department. Refer to VPW 3 Packet for examples on how to complete the tables. a) Step 1 part 1: Account for physical units. Complete the tables below using #NUMBER # of units, NOT dollarsiin! Units in Bottling June 1 Physical units for BOTTLING Units completed and transferred out during June Units in Bottling June 30 Units transferred in from Blending during June Units to account for Units "accounted for Note: the 3 row should be the first 2 rows added together. The units "to account for should equal the units "accounted for" b) Step 1 part 2: Determine equivalent units. This is #wwwwNUMBER www of units, NOT dollars!!! For each of the 4 cost categories for Bottling Department complete the table below to determine the equivalent units. Hint: All units "completed and transferred to Finished Goods and units in "ending WIP-Bottling inventory" are 100% complete with respect to transferred in" costs (costs from Blending department) and bottle costs. Equivalent Units (ACCOUNTED FOR) Transferred in Other Materials (Blending costs) Bottles Conversion Equivalent units in ending WIP- Bottling inventory Equivalent units completed and transferred to Finished Goods" Total Equivalent units accounted for Note: The 3"row should be the first two rows added together. The 3 row for "Other" and Conversion WILL NOT equal the other columns in this table, nor will they equal the 3 row in the table for step 1 in a) above. c) Step 2 part 1: Make sure you complete the table Determine Costs to account for. These are SSSSDOLLARSSSSS not number of units. Costs to account for" is the sum of the beginning WIP-Bottling balance plus the costs that would have been added/assigned to the WIP-Bottling department during June. This information is summarized in the table above. Complete the table below using the information provided above. Total Costs to be accounted for Bottling Department Summary of Costs to be accounted for WIP-Bottling Costs Added Cost Category beginning during June Transferred in from Blending $ 55,000 from Ibiv Cost of Bottles 111,000 from 2b i Other Material Costs 18,000 from 2b 11 Conversion Costs 80.500 from 2c Total $ 264,500 Note: The costs" transferred IN" that were transferred into Bottling once "completed and transferred OUT" of the Blending department. d) Step 2 part 2: Calculate cost per equivalent unit. Answers will be SSSDOLLARSSS per WWWNUMBER# of units. Use the totals in b) and e) above to calculate the Cost per equivalent unit for cach cost category. Use 4 decimal places to minimize rounding differences. Cost per Equivalent Unit Transferred in Bottle Costs Conversion Other Material Total Costs to be accounted for 3(c) Equivalent units 3(b) Cost Per Equivalent Unit 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 Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started