PROBLEM 4A11 Equivalent Units of Production; Cost per Equivalent Unit; Assigning CostsFIFO

Method LO46, LO47, LO48, LO49

Refer to the data for the Blending Department of Sunspots Beverages, Ltd., in Problem 415. Assume that the company uses the FIFO method in its process costing system.

PROBLEM 415 Comprehensive ProblemWeighted-Average Method `LO42, LO43, LO44, LO45

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.

Required:

1. Compute the Blending Departments equivalent units of production for materials and conversion for June.

2. Compute the Blending Departments cost per equivalent unit for materials and conversion for June.

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

4. Calculate the Blending Departments 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.

Percent Completed Materials Conversion Units 100% 75% Work in process, beginning. Started into production ... Completed and transferred out Work in process, ending... 20,000 180,000 160,000 40,000 100% 25% Materials Conversion Work in process, beginning Cost added during June $25,200 $334,800 $24,800 $238,700