Question

Required information [The following information applies to the questions displayed below.) 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): June 1 balance Materials Direct labor Overhead June 30 balance Work in Process-Mixing Department 28,000 Completed and transferred to Finished Goods 148,905 94,500 112,000 The June 1 work in process inventory consisted of 4,500 units with $15,020 in materials cost and $12,980 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, 37,000 units were started into production. The June 30 work in process inventory consisted of 8,600 units that were 100% complete with respect to materials and 50% complete with respect to conversion.

6. What is the cost of beginning work in process inventory plus the cost added during the period for materials?

7. What is the cost of beginning work in process inventory plus the cost added during the period for conversion?

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

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

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

Answer 1

Equivalent units of production EUP - Conversion Units % Material EUP- Material Conversion 100% Units to be accounted for:- Units Completed & transferred out Units of Ending work in Process Equivalent units of production 32900 8600 41500 32900 8600 41500 100% 60% 100% 32900 5160 38060 Units completed & transferred = Beginning inventory +Units started - Ending Inventory = 4500+37000-8600 = 32900 Cost Per EUP Cost of Beginning work in process Cost incurred this period Total Cost Equivalent units of productiom Cost per Equivalent unit Material 15,020 148,905 163,925 41500 3.95 $ $ $ Conversion 12,980 206,500 219,480 38060 5.77 $ $ $ Total 28,000 355,405 383,405 Divide $ EUP Cost of Ending work in process Direct Material Cost per EUP 3.95 Total Cost 33,970 8600 $ $ Conversion cost added during month = Labor + Overhead = 94500+112000 = 206500 6 Cost of beginning WIP & coast added for material $ 7 Cost of beginning WIP & coast added for conversion $ 8 Cost per equivalent unit Material $ 9 Cost per equivalent unit conversion $ 10 Cost of Ending WIP for material $ 163,925 219,480 3.95 5.77 33,970