In-class Exercise #2
Question 1.
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 blended in the Blending Department. The blended juices are then bottled and 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%
Work in process, beginning
Cost added during June
A) Calculate the following:
1) Equivalent units
2) Cost per EU
3) Cost of ending WIP
4) Cost of units transferred out
B) Prepare cost reconciliation report
Materials
$25,200
$334,800
Conversion
$24,800
$238,700