Question

Required information The Foundational 15 [LO4-1, LO4-2, L04-3, L04-4, LO4-5) [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 Work in Process Mixing Department Completed and transferred to Finished Goods 125,000 83,500 101.000 Materials Direct labor Overhead June 30 balance The June 1 work in process inventory consisted of 5,400 units with $22,220 in materials cost and $17,780 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, 37,900 units were started into production. The June 30 work in process inventory consisted of 8,800 units that were 100% complete with respect to materials and 50% complete with respect to conversion Foundational 4-1 Required: 1. Prepare the journal entries to record the raw materials used in production and the direct labor cost incurred. (If no entry is required for a transaction/event, select "No journal entry required in the first account field.)

Answer 1

The answer has been presented in the supporting sheet. For detailed answer refer to the supporting sheet.

Answer Part 1) Transaction General Journal 1 Work In Process Raw Material Inventory To record raw material issued to production) Debit Credit 125000 125000 Credit Debit 83500 Transaction General Journal 2 Work In Process Wages Payable (To record direct labour) 83500 Part 2) Transaction General Journal 1 Work In Process Manufacturing Overheads (To record manufacturing overheads applied) Debit Credit 101000 101000

3 Part 3) 4 Units completed and transferred out 5 = beginning units + started units - units in ending inventory 6 = 5400+37900-8800 7 = 34500 Units 9 Thus the correct answer is 34500 Units 1 Part 4) 2 Equivalent unit of material 3 = ( unit completed and transferred *100%) + (units in ending inventory *100%) 4 = (34500*100%) +(8800*100%) 5 = 43300 Units 7 Thus the correct answer is 43300 Units 9 As per HomeworkLib policy we are required to solve the first 4 parts only. For demainig parts you have to post separate question