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need help solving 6 a) b) c) and d)

need to answer average inventory which should be $395,328

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blending department info below

b) Assume the Finished Goods Inventory was zero at the beginning of June and zero at the end of June. How many units did they sell during June? 272,500 c) If Sunspot Beverages, Ltd. sold cach unit for $12.00 what would their sales revenue be? 3,270,000 _Write the journal entry to record the sales revenue for June d) How much is their expense (COGS)21,514,665 Write the journal entry to record the COGS for June. Post this entry to the Finished Goods account attached at the end of the project. 5) Raw Material: The company uses no indirect material and the Raw Material Inventory began the month with $120,000 and ending the month with $98,000. How much raw material inventory did the company purchase during June? 289,450 Write the summary journal entry to record the purchase. Post the journal entry to the T-account provided at the end of the attachment. 6) Financial Statement Analysis: Use Chapter 14 concepts for this requirement. For Sunspot Beverages, a) What is the value of Inventory they would record on their Balance Sheet at the beginning of June? At the end of June? Remember, Inventory on the balance sheet includes ALL inventory accounts. b) What is their werage inventory for June? c) Using the formulas provided in Chapter 14 of your text (Pg. 678), calculate the following: Gross Margin percentage: Inventory turnover: Average sales period for June. Note: Remember you are calculating ratios for a month not a ycar. You will need to annualize" your turnover (multiply by 12 months) and/or use 30 days rather than 365 days for your sales period d) Assume the industry leader has an inventory Turnover of 55 and average sales period of 7 days. How does Sunspot Beverages compare to the industry leader? Your answer and comment should be 20 to 50 words. WIP-Blending 25,000 $ Bal 6/1 1b) Account Titles WIP-Blending Raw Material Inventory Debit S i) Credit 205,300 $ 205,300 ii) S 56,151 WIP-Blending Factory Payroll/Wages Payable $ 56,151 iii) S 68,629 WIP-Blending Manufacturing Overhead S 68,629 iv) S 314,160 WIP-Bottling WIP-Blending $ 314,160 1c) WIP-Blending 25,000 205,300 $ 314,160 WIP-Bottling 56,151 68,629 WIP-Bottling Bal 6/1 WIP-Blending $ 314,160 Bal 6/1 S Materials Labor S Overhead s Bal 6/30 S 40,920 Bal 6/30 Bal 6/1 S Purchase s Raw Material Inventory 120,000 183,300 $ 205,300 WIP-Blending Finished Goods Inventory Bal 6/1 $ WIP-Bottling Bal 6/30 S 98,000 Bal 6/30 2 (a) Opening Balance in WIP Bottling A/C Tfrd in Costs Bottle Costs Other Material Costs Conversion Costs Total OP WIP 55000 111000 18000 80500 264500 WIP Bottling Ale 264500 314160 Bal 6/1 WIP Blending Bottles Other Material Conversion Bal 6/30 2 (b) (0) Cost of Bottles added to Bottling Deptt No of units tfrd from Blending X $ 2.50 -280500 units X $ 2.50 701250 2 (0) (0) Cost of Other Materials added to Bottling Deptt 1/2 the Material Cost added to Blending Deptt from RM Inventory -1/2 X 205300 102650 Journal Entries Credit Account Titles WIP Bottling Raw Material Inventory Debit 701250 701250 102650 WIP Bottling Raw Material Inventory 102650 2 (b)(iv) T-Account Bal 6/1 WIP Blending Bottles Other Material Conversion Bal 6/30 WIP Bottling Ale 264500 314160 701250 102650 20 Conversion Costs of Bottling Deptt Conversion Cost of Blending Deptt Labour+Overhead 56151 +68629 = 124780 Conversion Costs of Bottling Deptt = 3 X 124780 = 374340 Direct Labour = 40% of 374340 =149736 Overhead =(374340-149736) = 224604 Journal Entries Credit Account Titles WIP Bottling Wages payable Debit 149736 149736 224604 WIP Bottling Mfg Overhead 224604 T-Account Bal 6/1 WIP Blending Bottles Other Material Labour Overhead Bal 6/30 WIP Bottling A/c 264500 314160 701250 102650 149736 224604 Process costing of second department: Follow the steps below to perform the costing analysis for the Bottling department. Refer to VPW 3 Packet for examples on how to complete the tables. a) Step 1 part 1: Account for physical units. Complete the tables below using ######NUMBER ##### of units, NOT dollars!!!!!! Physical units for BOTTLING Units in Bottling June 1 44.000 Units completed and transferred 272/500 out during June Units transferred in from Units in Bottling June 30 12801500 Blending during June 52,000 Units "to account for" 3:24/500 Units "accounted for 329,500 Note: the 3 row should be the first 2 rows added together. The units "to account for" should equal the units "accounted for b) Step 1 part 2: Determine equivalent units. This is #WWWWNUMBER#WW of units, NOT dollars!!! For each of the 4 cost categories for Bottling Department, complete the table below to determine the equivalent units. Hint: All units "completed and transferred to Finished Goods" and units in "ending WIP-Bottling inventory" are 100% complete with respect to transferred in" costs (costs from Blending department) and bottle costs. Equivalent Units (ACCOUNTED FOR) Transferred in Other Materials (Blending costs) Bottles 52.000 52/000 33.800 Conversion Equivalent units in ending WIP- Bottling inventory 26/000 Equivalent units completed and transferred to Finished Goods" 272/500 272,500 272/500 1272,500 Total Equivalent units accounted for 1324,500 3a4/500 306,300 298,500 Note: The 3"row should be the first two rows added together. The 3 row for "Other" and Conversion WILL NOT equal the other columns in this table, nor will they equal the 3 row in the table for step 1 in a) above c) Step 2 part 1: Make sure you complete the table Determine Costs to account for. These are SSSSDOLLARSSSSS not number of units. Costs to account for" is the sum of the beginning WIP-Bottling balance plus the costs that would have been added/assigned to the WIP-Bottling department during June. This information is summarized in the table above. Complete the table below using the information provided above. Bottling Department: Summary of Costs to be accounted for WIP- Bottling Costs Added Total Costs to be Cost Category beginning during June accounted for Transferred in from Blending $ 55,000 34160 from Ibiv 369,160 Cost of Bottles 111.000 70,250 from 251 812/250 Other Material Costs 18,000 102 1650 Efrom 26 i 20/650 Conversion Costs 80,5003747340 from 2c 4541840 Total $ 264,500 1,492.400 ID 757,400 Note: The costs "transferred IN" that were transferred into Bottling once "completed and transferred OUT" of the Blending department. d) Step 2 part 2: Calculate cost per equivalent unit. Answers will be SSSDOLLARSSS per ####NUMBER### of units. Use the totals in b) and c) above to calculate the Cost per equivalent unit for each cost category. Use 4 decimal places to minimize rounding differences. Cost per Equivalent Unit Bottle Costs Other Material Transferred in Total Costs to be accounted for 3(e) 369,160 Equivalent units 3(b) 2247500 Cost Per Equivalent Unit 11376 812 250 324,500 12.5031 120.650 30% 300 10.3939 Conversion 454,840 298,500 1.5238 c) Step 3: Allocate costs to units. Multiply the Cost per Equivalent for cach cost category in step 4 time the equivalent units for "completed and transferred to Finished Goods" and "ending Inventory to complete the table below. ROUND YOUR ANSWERS TO NEAREST WHOLE DOLLARS. Add the cost categories together across to the Total Column. Total cach column to the bottom row "costs accounted for". The total in the bottom right box should be the total of the numbers above it AND the total of the numbers to its left. (It may be off a few dollars for rounding). Your answer represents SSSSDOLLARSSSSSS not units. Round your answers to the nearest whole dollar Total 1242,244 Costs accounted for in dollars Other Material Transferred in Bottles Costs Conversion 130161 13,314 39619 304,996 |6821045 107,338 415,236 369,151 812,256 1201652 454.859 59,155 WIP -Ending balance Costs of goods completed and transferred out Total Costs accounted for 11,514,665 111756,914 Note: The total costs accounted for" in the bottom row should equal (off a few Ss for rounding) the totals "costs to account for" in the bottom row of the table in step 3 4) Sale of Finished Goods: Accounting for the analysis. As units are completed in the Bottling department, they are moved to Finished Goods Inventory where they are ready to be sold. The analysis above determines the dollar value of those completed units. a) Write the journal entry to move these costs from WIP-Bottling Inventory account to Finished Goods Inventory account. Post the JE to the WIP-Bottling and Finished Goods T-accounts attached at the end of the project. Determine the ending balance for WIP-Bottling account. Balance should equal first row from table in 3e. 1514, 665 Finbled goods inventory WIP-Botting goods DR CR WIP-Botting 1,514.665 Bulboll 264,500 1,514,665 FMikel Einsted goals EP Blonding 314,160 Bulbo ottles 7011250 ther matrol conversion 374,340 Ball8/20 1514.805 WIP byltingisi4885 102.650 b) Units sold = 272500 units i.e. Units transferred to Finished Goods from Bottling Department c) Sales Revenue = 272500 x $12 = $3270000 Account Titles Debit Credit Accounts Receivable $ 3,270,000 Sales Revenue $ 3,270,000 d) Cost of Goods Sold = $1514665 Account Titles Debit Credit Cost of Goods Sold $ 1,514,665 Finished Goods Inventory $ 1,514,665 5) Purchases = $205300+98000-120000 = $183300 Account Titles Debit Credit Raw Material Inventory $ 183,300 Accounts Payable $ 183,300 Raw Material Inventory Bal 6/1 $ 120,000 Purchase $ 183,300 $ 205,300 WIP Blending Bal 6/30 $ 98,000 Alternative to 5, assuming material used in bottling department is from raw material issued. Purchases = $205300+102650+98000-120000= $285950 Account Titles Debit Credit Raw Material Inventory $ 285,950 Accounts Payable $ 285,950 Raw Material Inventory Bal 6/1 $ 120,000 Purchase $ 285,950 $ 205,300 WIP Blending $ 102,650 WIP Bottling Bal 6/30 $ 98,000 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. Percent Completed Materials Conversion 700 400 Work in process, beginning Started into production Completed and transferred out Work in process, ending Units 56,000 290,500 280,500 66,000 750 251 Work in process, beginning Cost added during June Materials Conversion $ 19,100 $ 5,900 $ 205,300 $ 124,780 Required 1 Required 2 Required 3 Required 4 Required 5 Prepare a cost reconciliation report for the Blending Department for June. (Roun places.) Blending Department Cost Reconciliation Costs to be accounted for: Cost of beginning work in process inventory$ 25,000 Costs added to production during the period 330,080 Total cost to be accounted for $ 355,080 Costs accounted for as follows: Cost of ending work in process inventory $ 40,920 Cost of units completed and transferred out 314,160 Total cost accounted for $ 355,080

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