Question

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 35,000 Completed and transferred to Finished Goods ? Materials 120,205 Direct labor 80,500 Overhead 98,000 June 30 balance ? The June 1 work in process inventory consisted of 5,100 units with $18,570 in materials cost and $16,430 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, 37,600 units were started into production. The June 30 work in process inventory consisted of 8,200 units that were 100% complete with respect to materials and 50% complete with respect to conversion. 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

Journal entry

No	General Journal	Debit	Credit
a	Work in process-Mixing department	120205
	Raw material		120205
	(To record raw material used)
b	Work in process-Mixing department	80500
	Wages payable		80500
	(To record labor incurred)