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	40,000	Completed and transferred to Finished Goods	?
Materials	131,680
Direct labor	85,500
Overhead	103,000
June 30 balance	?

The June 1 work in process inventory consisted of 5,600 units with $21,270 in materials cost and $18,730 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, 38,100 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.

Required:

1. Prepare the journal entries to record the raw materials used in production and the direct labor cost incurred.

2. Prepare the journal entry to record the overhead cost applied to production.

3. How many units were completed and transferred to finished goods during the period?

4. Compute the equivalent units of production for materials.

5. Compute the equivalent units of production for 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?

9. What is the cost per equivalent unit for conversion?

10. What is the cost of ending work in process inventory for materials?

11. What is the cost of ending work in process inventory for conversion?

12. What is the cost of materials transferred to finished goods?

13. What is the amount of conversion cost transferred to finished goods?

14. Prepare the journal entry to record the transfer of costs from Work in Process to Finished Goods.

15-a. What is the total cost to be accounted for?

15-b. What is the total cost accounted for?

Answer 1

Answer is given below with working notes

Credit Debit $131,680 1 General Journal Work in process - Mixing Department To Raw Material inventory (To record issue of material to work in process) $131,680 Credit Debit $85,500 General Journal Work in process - Mixing Department To Wages payable (To record direct labor incurred on work in process) $85,500 Credit Debit $103,000 General Journal Work in process - Mixing Department To Manufacturing overhead (To record overhead applied to production) $103,000 3 Units completed and transferred to finished goods 34,500 Unit Reconciliation: Oncmation: Units to account for: Beginning WIP Inventory Units Started During Period Total Units To Account for 5,600 38,100 43,700 Total Units accounted for From Beginning WIP in Inventory Units started and completed during Period Units completed and transferred out Units in Ending WIP Inventory Total Units Accounted for 5,600 28,900 34,500 9,200 43,700 4 & 5 Equivalent Units of Production - Weighted average method Equivalent units EUP % EUP Materials Conversion Conversion Units Materials Units Completed during Period: Units completed and transferred out Units in Ending WIP Inventory Total 34,500 9,200 43,700 100% 100% 34,500 9,200 43,700 100% 50% 34,500 4,600 39,100 6 cost of beginning WIP inventory plus the cost added during the period for material $152,950 i cost of beginning WIP inventory plus the cost added during the period for Labor $207,230 Cost per equivalent unit of production Cost from Beginning WIP Inventory Current Period Costs Total cost Costs Equivalent units of production EUP 8 & 9 Cost per equivalent unit of production (rounded to 2 decimal places) Materials $21,270 $131,680 $152,950 Costs 43,700 EUP $3.50 Conversion $18,730 $188,500 $207,230 A 39,100 B $5.30 A/B 10 cost of ending work in process inventory for materials $32,200 11 cost of ending work in process inventory for Labor $24,380 12 cost of materials transferred to finished goods $120,750 13 cost of conversion transferred to finished goods $182,850 EUP Cost per EUP Total Cost 34,500 34,500 $3.50 $5.30 $120,750 $182,850 $303,600 Total Cost accounted for: Cost of units transferred out Direct Material Conversion Total cost transferred out Costs of ending work in process Direct Material Conversion Total cost of ending Work in process Total costs accounted for 9,200 Cost per EUP Total Cost $3.50 $32,200 $5.30 $24,380 $56,580 $360,180 Credit Debit $303,600 General Journal Finished Goods To Work in process - Mixing Department |(To record transfer of finished goods from WIP) $303,600 15 total cost to be accounted for $360,180 Total Costs to be Accounted for: Opening WIP Direct Material Conversion Cost Total Cost to Account for $40,000 $131,680 $188,500 $360,180 16 Total cost accounted for $360,180