Purchase Solution

Process Costing - Spirit Cola Corp.

Not what you're looking for?

Ask Custom Question

See attachment jobs need help with what is left blank

Spirit Cola Corp. produces a new soft drink brand. Sweet spring , using two production departments, mixing and bottling. Spirits beginning balances and data pertinent to the mixing departments activities for 2020 follow:

Accounts Beginning Balance
Cash $45,000
Raw materials inventory 14,800
Production Supplies 100
Work in Process invent (400,000) units 48,000
Common stock 107,900

1. Sprint Cola issued additional common stock for $54,000 cash.

2. The company purchased raw materials and production supplies for $29,600 and $800, respectively, in cash.

3. The company issued $32,360 of raw materials to the mixing department for the production of $800,000 units of sweet spring that were started in 2010. A unit of soft drink is the amount needed to fill a bottle.

4. The mixing department used 2,400 hours of labor during 2010, consisting of 2,200 hours for direct labor and 200 hours for indirect labor. The average was $9.60 per hour. All wages were paid in 2010 in cash.

5. The predetermined overhead rate was $1.60 per direct labor hour.

6. Actual overhead cost other than indirect materials and indirect labor for the year amounted to $1,260 which was paid in cash.

7. The mixing department completed 600,000 units of sweet spring. The remaining inventory was 25% complete.

8. The completed soft drink was transferred to the bottling department.

9. The ending balance in the production supplies account was $560.

A. Determine the number of equivalent units of production.

B. Determine the product cost per equivalent unit.

C. Allocate the total cost between the ending work in process inventory and units transferred to the bottling department.

D. Record the transactions in T-Accounts

Purchase this Solution

Solution Summary

The solution explains how to determine the equivalent units, costs assigned to units and recording of transactions in T accounts.

Purchase this Solution

Free BrainMass Quizzes
Understanding the Accounting Equation

These 10 questions help a new student of accounting to understand the basic premise of accounting and how it is applied to the business world.

Accounting: Statement of Cash flows

This quiz tests your knowledge of the components of the statements of cash flows and the methods used to determine cash flows.

Business Ethics Awareness Strategy

This quiz is designed to assess your current ability for determining the characteristics of ethical behavior. It is essential that leaders, managers, and employees are able to distinguish between positive and negative ethical behavior. The quicker you assess a person's ethical tendency, the awareness empowers you to develop a strategy on how to interact with them.


This quiz will test your understanding of the SWOT analysis, including terms, concepts, uses, advantages, and process.


This tests some key elements of major motivation theories.