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Solomon Cola Corporation produces a new soft drink brand, Sweet Spring, using two production departments: mixing and bottling. Solomon's beginning balances and data pertinent to
Solomon Cola Corporation produces a new soft drink brand, Sweet Spring, using two production departments: mixing and bottling. Solomon's beginning balances and data pertinent to the mixing department's activities for Year 2 follow: Accounts Cash Raw materials inventory Production supplies Work in process inventory (350,000 units) Common stock Beginning Balances $ 53,500 14,400 100 42,000 $110,000 1. Solomon Cola issued additional common stock for $55,000 cash. 2. The company purchased raw materials and production supplies for $30,970 and $800, respectively, in cash. 3. The company issued $33,300 of raw materials to the mixing department for the production of 600,000 units of Sweet Spring that were started in Year 2. A unit of soft drink is the amount needed to fill a bottle. 4. The mixing department used 2,200 hours of labor during Year 2, consisting of 2,000 hours for direct labor and 200 hours for indirect labor. The average wage was $9.50 per hour. All wages were paid in Year 2 in cash. 5. The predetermined overhead rate was $1.60 per direct labor hour. 6. Actual overhead costs other than indirect materials and indirect labor for the year amounted to $940, which was paid in cash. 7. The mixing department completed 700,000 units of Sweet Spring. The remaining inventory was 20 percent complete. 8. The completed soft drink was transferred to the bottling department. 9. The ending balance in the Production Supplies account was $540. Required a. Determine the number of equivalent units of production. b. Determine the product cost per equivalent unit. c. Calculate the total cost allocated between the ending work in process inventory and units transferred to the bottling department. d. Record the transactions in T-accounts. Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Req A and B Reqc ReqD Calculate the total cost allocated between the ending work in process inventory and units transferred to the bottling department. (Round intermediate calculations to 2 decimal places.) Cost Allocation To the bottling department To ending work-in-process inventory $ 93,072 X 6,648 x 99,720 Total allocated cost $
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