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 ing Department 45,000 Completed and transferred to Finished Goods 140,400 89,500 107,000 The June 1 work in process inventory consisted of 6,000 units with $24.250 in materials cost and $20.750 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, 38,500 units were started into production. The June 30 work in process inventory consisted of 10,000 units that were 100% complete with respect to materials and 50% complete with respect to conversion. 7. What is the cost of beginning work in process inventory plus the cost added during the period for conversion? Total cost of conversion

Answer 1

Flow of production
	Physical Units		Equivalent Units
			Transferred In	Materials	Conversion
Beginning Inventory	6000
Started during the period	38500
To account for	44500
Completed and Transferred Out	34500		34500	34500	34500
Ending Inventory	10000		10000	10000	5000
Units accounted for (Equivalent      units)	44500		44500	44500	39500
%Ending Inventory complete			100%	100%	50%
Cost per equivalent unit						Total
Beginning Inventory Costs			-	24,250.00	20,750.00	45,000.00
Costs added			-	140,000.00	196,500.00	336,500.00
Total costs to date			-	164,250.00	217,250.00	381,500.00
Equivalent units			44,500.00	44,500.00	39,500.00
Cost per equivalent unit			-	3.69	5.50
Assignment of costs						Total
Completed and transferred out			-	127,339.89	189,750.00	317,089.89
Ending Inventory			-	36,910.11	27,500.00	64,410.11
						381,500.00

Completed and transfer out	$189,750
Ending inventory cost	$27,500
Total cost of conversion	$217,250