Problem 4A-11 Equivalent Units of Production; Cost per Equivalent Unit; Assigning Costs-FIFO Method [LO4-6, LO4-7, LO4-8, LO4-9]

Sunspot Beverages, Ltd., of Fiji uses the FIFO 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
	Units	Materials		Conversion
Work in process, beginning	20,000	100	%	75	%
Started into production	180,000
Completed and transferred out	160,000
Work in process, ending	40,000	100	%	25	%

	Materials		Conversion
Work in process, beginning	$	25,200	$	24,800
Cost added during June	$	334,800	$	238,700

Required:

1. Compute the Blending Department's equivalent units of production for materials and conversion for June.

2. Compute the Blending Department's cost per equivalent unit for materials and conversion for June.

3. Calculate the Blending Department's cost of ending work in process inventory for materials, conversion, and in total for June.

4. Calculate the Blending Department's cost of units transferred out to the next department for materials, conversion, and in total for June

5. Prepare a cost reconciliation report for the Blending Department for June.