Sunspot Beverages, Ltd., of Fiji uses the weighted-average method in its process costing system. It makes blended tropical fruilt 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 96,000 70 8
Started into production 460,500 40
Completed and transferred out 450,500 75
Work in process, ending 106,000 25 8
Materials Conversion
Work in process, beginning 38,900 14,100
Cost added during June 416,900 300,720
Required:
1. Calculate the Blending Department's equivalent units of production for materials and conversion in June.
2. Calculate the Blending Department's cost per equivalent unit for materials and conversion in 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 Bottling Department for materials, conversion, and in total for June.
5. Prepare a cost reconciliation report for the Blending Department for June.