PART B

Sunshine Orange Juice is produced in two processing departments The Blending Department and the Bottling Department. The following information relates to the Blending Department for April 2018:

Units in process, April 1: 30,000 (Materials 100% complete, Conversion 60% complete).

Units started into production in April: BDT 420,000.

Units in process, 30 April: 80,000 (Materials 50% complete, Conversion 25% complete).

Cost data:

Working in process inventory 1 April:

Materials: $92,000; Conversion Cost: $58,000.

Cost added during April:

Materials: $851,000; Conversion Cost: $995,000.

Required:

1. Determine the Equivalent Units of Production (4 marks).

2. Compute the cost per equivalent unit (6 marks).

3. Determine the cost of ending work in process inventory and cost of units completed and transferred out (6 marks).

4. Prepare cost reconciliation (4 marks).