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Clopack Company manufactures one product that goes through one processing department called Mixing. All raw materials are introduced at the start of work in the Mixing Department. The company uses the weighted-average method of process costing. Its Work in Process T-account for the Mixing Department for June follows (all forthcoming questions pertain to June):

Work in Process—Mixing Department
June 1 balance	30,000	Completed and transferred to Finished Goods	?
Materials	142,840
Direct labor	91,500
Overhead	109,000
June 30 balance	?

The June 1 work in process inventory consisted of 4,800 units with $17,140 in materials cost and $12,860 in conversion cost. The June 1 work in process inventory was 100% complete with respect to materials and 60% complete with respect to conversion. During June, 37,300 units were started into production. The June 30 work in process inventory consisted of 8,000 units that were 100% complete with respect to materials and 50% complete with respect to conversion.

1) What is the cost per equivalent unit for conversion? (Round your answer to 2 decimal places.)

2) What is the cost of ending work in process inventory for materials? (Round your intermediate calculations to 2 places.)

3) What is the cost of ending work in process inventory for conversion? (Round your intermediate calculations to 2 places.)

4) What is the cost of materials transferred to finished goods? (Round your intermediate calculations to 2 places.)

5) What is the amount of conversion cost transferred to finished goods? (Round your intermediate calculations to 2 places.)

6) Prepare the journal entry to record the transfer of costs from Work in Process to Finished Goods. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

7)-a. What is the total cost to be accounted for?

-b. What is the total cost accounted for?

Answer 1

Journal entry

date	account and explanation	Debit	Credit
	Work in process	109000
	Manufacturing overhead		109000
	(To record applied overhead)

Unit transferred out = 4800+37300-8000 = 34100

Equivalent unit of material = 34100+8000 = 42100

Equivalent unit of conversion = 34100+(8000*50%) = 38100

Cost of beginning work in process plus cost added for material = 17140+142840 = 159980

Cost of beginning work in process Plus cost added for conversion = 12860+200500 = 213360

Cost per equivalent unit of material = 159980/42100 = 3.80

1) Cost per equivalent unit of conversion = 213360/38100 = 5.60

2) Cost of ending WIP for material = 8000*3.8 = 30400

3) Cost of ending WIP for conversion = 4000*5.6 = 22400

4) Cost of material transferred to finished goods = 3.8*34100 = 129580

5) Cost of conversion cost to finished gods = 5.6*34100 = 190960

6) Journal entry

Date	account and explanation	Debit	Credit
	Finished goods	320540
	Work in process		320540

7a) Total cost to be accounted for = 30000+343340 = 373340

Total cost accounted as = 320540+52800 = 373340