Question

Required information The Foundational 15 [LO4-1, LO4-2, LO4-3, LO4-4, 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 27,000 Completed and transferred to Finished Goods 153, 250 97,500 115,000 Materials Direct labor Overhead June 30 balance ? The June 1 work in process inventory consisted of 4,200 units with $14,440 in materials cost and $12,560 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, 36,700 units were started into production. The June 30 work in process inventory consisted of 9,200 units that were 100% complete with respect to materials and 50% complete with respect to conversion. Foundational 4-15

Answer 1

Journal entry

No	General Journal	Debit	Credit
a	Work in process	153250
	Raw material		153250
	(To record raw material used)
b	Work in process	97500
	Direct labor		97500
	(To record direct labor)

Journal entry

No	General Journal	Debit	Credit
a	Work in process	115000
	Manufacturing overhead		115000
	(To record overhead)

3) Unit completed and transferred out = 4200+36700-9200 = 31700 Units

4) Equivalent unit of material = 31700+9200 = 40900

5) Equivalent unit of conversion = 31700+(9200*50%) = 36300

6) Cost of beginning WIP and cost added for material = 14440+153250 = 167690

7) Cost of beginning WIP and cost added for conversion = 12560+97500+115000 = 225060

8) Cost per equivalent unit of material = 167690/40900 = 4.1