Sunspot Beverages, Ltd., of Fiji makes blended tropical fruit
drinks in two stages. Fruit juices are...
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Accounting
Sunspot Beverages, Ltd., of Fiji makes blended tropical fruitdrinks in two stages. Fruit juices are extracted from fresh fruitsand then blended in the Blending Department. The blended juices arethen bottled and packed for shipping in the Bottling Department.All materials are added by the extraction department. The followinginformation pertains to the operations of the Blending Departmentfor June.
UNITS
Percentages
Workin Process, beginning
20000
75 % complete
Started into production
180000
Workin process - ending
40000
25 % complete
Materials
Conversion
Workin Process, beginning
$25200
$24800
Costadded during June
$334800
$238700
Assume that the company uses the FIFOmethod.
Required:
Determine the equivalent units for conversion cost in June forthe Blending Department.
Determine the cost per equivalent unit for material cost in Junefor the Blending Department.
Determine the cost per equivalent unit for conversion cost inJune for the Blending Department.
Determine the cost of units transferred-out in June for theBlending Department.
Determine the value of the ending work in process inventory inJune for the Blending Department.
Answer & Explanation
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4.5 Ratings (703 Votes)
All working forms part of the answer Requirement 1 Equivalent units EUP FIFO Method Units Material EUP Materials Conversion EUP Conversion Units of ENDING WIP 40000 100 40000 25 10000 Units STARTED COMPLETED 140000 100 140000 100 140000 Units of beginning WIP
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