need help solving 6 a) b) c) and d) using the information posted below

need to find average inventory which should be $395,328 and need to find gross margin, inventory turnover and average sales for june

info below to solve

i need the answer for question 6 and its subparts

b) Assume the Finished Goods Inventory was zero at the beginning of June and zero at the end of June. How many units did they sell during June? 272,500 c) If Sunspot Beverages, Ltd. sold cach unit for $12.00 what would their sales revenue be? 3,270,000 _Write the journal entry to record the sales revenue for June d) How much is their expense (COGS)21,514,665 Write the journal entry to record the COGS for June. Post this entry to the Finished Goods account attached at the end of the project. 5) Raw Material: The company uses no indirect material and the Raw Material Inventory began the month with $120,000 and ending the month with $98,000. How much raw material inventory did the company purchase during June? 289,450 Write the summary journal entry to record the purchase. Post the journal entry to the T-account provided at the end of the attachment. 6) Financial Statement Analysis: Use Chapter 14 concepts for this requirement. For Sunspot Beverages, a) What is the value of Inventory they would record on their Balance Sheet at the beginning of June? At the end of June? Remember, Inventory on the balance sheet includes ALL inventory accounts. b) What is their werage inventory for June? c) Using the formulas provided in Chapter 14 of your text (Pg. 678), calculate the following: Gross Margin percentage: Inventory turnover: Average sales period for June. Note: Remember you are calculating ratios for a month not a ycar. You will need to annualize" your turnover (multiply by 12 months) and/or use 30 days rather than 365 days for your sales period d) Assume the industry leader has an inventory Turnover of 55 and average sales period of 7 days. How does Sunspot Beverages compare to the industry leader? Your answer and comment should be 20 to 50 words 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. Fighlighted amounts provided as check figures. Use these Inventory T-accounts for Sunspot Beverages month of June as directed in the requirements below. WIP-Bottling WIP-Blending Bal 6/1 $25,000 $14, 160 WIP WEP Blady Material $205,300 Bottery bor $561151 werhead 3681629 Ball 6/30 540020 314-160 Finished Goods Inventory Bal 6/1 -0- Raw Material Inventory Bal 6/1 120,000 | 05 500 kg Purchase $183,300 Blendly 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 5205 205,300 ii) Assume 45% of the Conversion costs are direct labor. Write the journal entry to record the wages for June in the Blending Department DR $56.151 WIP blendry Factory Puyall wayespuble (R56.151 CR $68.629 ii) Write the journal entry to record the overhead applied to the Blending Department for June. Remember -Conversion costs are direct labor and overhead WER Bledry DR $681624 Muchacturing overleud 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 requirement 5 on CONNECT WIP Botthy DR 83141160 (R$314.160 WIP-Bledy 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? 5.269.500 Include the balance appropriately in the T-account for WIP Bottling below. WIP Bottiry Bal (18264,500 Bottles $701,250 Otter noforall $102650 concesna B1/36 b) The Botiling 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 =1 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 WIP Bottlery DR 7011250 Raw Netvid mo. WIP Bottlry DR Raw Matchu iv) Post the Je to the T-account for WIP-Bottling above. CR 7011260 102,050 ach 202.65 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 account for WIP-Bottling above. 56,151 +68,029 =124, 780 overhead = 1374,340-149,736) 3X1241780 = 374,340 - Convosh cest = 224,604 3 40% of 374,340= 149.736 Datober 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 dollars!!!!!! Physical units for BOTTLING Units in Bottling June 1 44.000 Units completed and transferred 272/500 out during June Units transferred in from Units in Bottling June 30 12801500 Blending during June 52,000 Units "to account for" 3:24/500 Units "accounted for 329,500 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#WW 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 52.000 52/000 33.800 Conversion Equivalent units in ending WIP- Bottling inventory 26/000 Equivalent units completed and transferred to Finished Goods" 272/500 272,500 272/500 1272,500 Total Equivalent units accounted for 1324,500 3a4/500 306,300 298,500 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 SSSSDOLLARSSSS$ 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. Bottling Department: Summary of Costs to be accounted for WIP-Bottling Costs Added Total Costs to be Cost Category beginning during June accounted for Transferred in from Blending $ 55,000 34,160 from Ibiv 369,160 Cost of Bottles 111,000 701.aso from 2bi $12.950 Other Material Costs 18,000 1021650 Efrom 2b i 120/650 Conversion Costs 80,500 374,340 from 2c 4541840 Total $ 264,500,492,400 10756,400 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 ####NUMBER### of units. Use the totals in b) and e) above to calculate the Cost per equivalent unit for each cost category. Use 4 decimal places to minimize rounding differences. Cost per Equivalent Unit Bottle Costs Transferred in Total Costs to be accounted for 3(e) 369,160 Equivalent units 3(b) 3247500 Cost Per Equivalent Unit 1.1376 812 250 324,500 12.5031 Other Material 120.650 306 300 Conversion 1454,840 298, sou 7.5238 10.3939 c) Step 3: Allocate costs to units. Multiply the Cost per Equivalent for cach cost category in step 4 time the equivalent units for "completed and transferred to Finished Goods" and "ending Inventory to complete the table below. ROUND YOUR ANSWERS TO NEAREST WHOLE DOLLARS. Add the cost categories together across to the Total Column. Total cach column to the bottom row "costs accounted for". The total in the bottom right box should be the total of the numbers above it AND the total of the numbers to its left. (It may be off a few dollars for rounding). Your answer represents SSSSDOLLARSSSSSS not units. Round your answers to the nearest whole dollar Total 1242,244 Costs accounted for in dollars Other Material Transferred in Bottles Costs Conversion 130161 13,314 39619 304,996 |6821045 107,338 415,236 369,151 812,256 1201652 454.859 59,155 WIP -Ending balance Costs of goods completed and transferred out Total Costs accounted for 11,514,665 111756,914 Note: The total costs accounted for" in the bottom row should equal (off a few Ss for rounding) the totals "costs to account for" in the bottom row of the table in step 3 4) Sale of Finished Goods: Accounting for the analysis. As units are completed in the Bottling department, they are moved to Finished Goods Inventory where they are ready to be sold. The analysis above determines the dollar value of those completed units. a) Write the journal entry to move these costs from WIP-Bottling Inventory account to Finished Goods Inventory account. Post the JE to the WIP-Bottling and Finished Goods T-accounts attached at the end of the project. Determine the ending balance for WIP-Bottling account. Balance should equal first row from table in 3e. 1514, 665 Finbled goods inventory WIP-Botting goods DR CR WIP-Botting 1,514.665 Bulboll 264,500 1,514,665 FMikel Einsted goals EP Blonding 314,160 Bulbo ottles 7011250 ther matrol conversion 374,340 Ball8/20 1514.805 WIP byltingisi4885 102.650 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 b) Assume the Finished Goods Inventory was zero at the beginning of June and zero at the end of June. How many units did they sell during June? 272,500 c) If Sunspot Beverages, Ltd. sold cach unit for $12.00 what would their sales revenue be? 3,270,000 _Write the journal entry to record the sales revenue for June d) How much is their expense (COGS)21,514,665 Write the journal entry to record the COGS for June. Post this entry to the Finished Goods account attached at the end of the project. 5) Raw Material: The company uses no indirect material and the Raw Material Inventory began the month with $120,000 and ending the month with $98,000. How much raw material inventory did the company purchase during June? 289,450 Write the summary journal entry to record the purchase. Post the journal entry to the T-account provided at the end of the attachment. 6) Financial Statement Analysis: Use Chapter 14 concepts for this requirement. For Sunspot Beverages, a) What is the value of Inventory they would record on their Balance Sheet at the beginning of June? At the end of June? Remember, Inventory on the balance sheet includes ALL inventory accounts. b) What is their werage inventory for June? c) Using the formulas provided in Chapter 14 of your text (Pg. 678), calculate the following: Gross Margin percentage: Inventory turnover: Average sales period for June. Note: Remember you are calculating ratios for a month not a ycar. You will need to annualize" your turnover (multiply by 12 months) and/or use 30 days rather than 365 days for your sales period d) Assume the industry leader has an inventory Turnover of 55 and average sales period of 7 days. How does Sunspot Beverages compare to the industry leader? Your answer and comment should be 20 to 50 words 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. Fighlighted amounts provided as check figures. Use these Inventory T-accounts for Sunspot Beverages month of June as directed in the requirements below. WIP-Bottling WIP-Blending Bal 6/1 $25,000 $14, 160 WIP WEP Blady Material $205,300 Bottery bor $561151 werhead 3681629 Ball 6/30 540020 314-160 Finished Goods Inventory Bal 6/1 -0- Raw Material Inventory Bal 6/1 120,000 | 05 500 kg Purchase $183,300 Blendly 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 5205 205,300 ii) Assume 45% of the Conversion costs are direct labor. Write the journal entry to record the wages for June in the Blending Department DR $56.151 WIP blendry Factory Puyall wayespuble (R56.151 CR $68.629 ii) Write the journal entry to record the overhead applied to the Blending Department for June. Remember -Conversion costs are direct labor and overhead WER Bledry DR $681624 Muchacturing overleud 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 requirement 5 on CONNECT WIP Botthy DR 83141160 (R$314.160 WIP-Bledy 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? 5.269.500 Include the balance appropriately in the T-account for WIP Bottling below. WIP Bottiry Bal (18264,500 Bottles $701,250 Otter noforall $102650 concesna B1/36 b) The Botiling 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 =1 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 WIP Bottlery DR 7011250 Raw Netvid mo. WIP Bottlry DR Raw Matchu iv) Post the Je to the T-account for WIP-Bottling above. CR 7011260 102,050 ach 202.65 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 account for WIP-Bottling above. 56,151 +68,029 =124, 780 overhead = 1374,340-149,736) 3X1241780 = 374,340 - Convosh cest = 224,604 3 40% of 374,340= 149.736 Datober 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 dollars!!!!!! Physical units for BOTTLING Units in Bottling June 1 44.000 Units completed and transferred 272/500 out during June Units transferred in from Units in Bottling June 30 12801500 Blending during June 52,000 Units "to account for" 3:24/500 Units "accounted for 329,500 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#WW 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 52.000 52/000 33.800 Conversion Equivalent units in ending WIP- Bottling inventory 26/000 Equivalent units completed and transferred to Finished Goods" 272/500 272,500 272/500 1272,500 Total Equivalent units accounted for 1324,500 3a4/500 306,300 298,500 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 SSSSDOLLARSSSS$ 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. Bottling Department: Summary of Costs to be accounted for WIP-Bottling Costs Added Total Costs to be Cost Category beginning during June accounted for Transferred in from Blending $ 55,000 34,160 from Ibiv 369,160 Cost of Bottles 111,000 701.aso from 2bi $12.950 Other Material Costs 18,000 1021650 Efrom 2b i 120/650 Conversion Costs 80,500 374,340 from 2c 4541840 Total $ 264,500,492,400 10756,400 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 ####NUMBER### of units. Use the totals in b) and e) above to calculate the Cost per equivalent unit for each cost category. Use 4 decimal places to minimize rounding differences. Cost per Equivalent Unit Bottle Costs Transferred in Total Costs to be accounted for 3(e) 369,160 Equivalent units 3(b) 3247500 Cost Per Equivalent Unit 1.1376 812 250 324,500 12.5031 Other Material 120.650 306 300 Conversion 1454,840 298, sou 7.5238 10.3939 c) Step 3: Allocate costs to units. Multiply the Cost per Equivalent for cach cost category in step 4 time the equivalent units for "completed and transferred to Finished Goods" and "ending Inventory to complete the table below. ROUND YOUR ANSWERS TO NEAREST WHOLE DOLLARS. Add the cost categories together across to the Total Column. Total cach column to the bottom row "costs accounted for". The total in the bottom right box should be the total of the numbers above it AND the total of the numbers to its left. (It may be off a few dollars for rounding). Your answer represents SSSSDOLLARSSSSSS not units. Round your answers to the nearest whole dollar Total 1242,244 Costs accounted for in dollars Other Material Transferred in Bottles Costs Conversion 130161 13,314 39619 304,996 |6821045 107,338 415,236 369,151 812,256 1201652 454.859 59,155 WIP -Ending balance Costs of goods completed and transferred out Total Costs accounted for 11,514,665 111756,914 Note: The total costs accounted for" in the bottom row should equal (off a few Ss for rounding) the totals "costs to account for" in the bottom row of the table in step 3 4) Sale of Finished Goods: Accounting for the analysis. As units are completed in the Bottling department, they are moved to Finished Goods Inventory where they are ready to be sold. The analysis above determines the dollar value of those completed units. a) Write the journal entry to move these costs from WIP-Bottling Inventory account to Finished Goods Inventory account. Post the JE to the WIP-Bottling and Finished Goods T-accounts attached at the end of the project. Determine the ending balance for WIP-Bottling account. Balance should equal first row from table in 3e. 1514, 665 Finbled goods inventory WIP-Botting goods DR CR WIP-Botting 1,514.665 Bulboll 264,500 1,514,665 FMikel Einsted goals EP Blonding 314,160 Bulbo ottles 7011250 ther matrol conversion 374,340 Ball8/20 1514.805 WIP byltingisi4885 102.650 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