Question

Required information The Foundational 15 [LO4-1, L04-2, LO4-3, 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'l balance Work in Process Mixing Department 40,000 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 4-13 13. What is the amount of conversion cost transferred to finished goods? (Round your intermediate calculations to 2 places.) Conversion cost transferred to finished goods

Answer 1

Answer-Completed and transferred out during the month:-

Particulars	Pound
Work in process, June 1	5,400
Add: Opening production during the month	37,900
Total Tons in process	43,300
Less: work in process	8,800
Completed and transferred out during the month	34,500

Calculation of equivalent units:-

Flow of Production	Equivalent Units
	Direct Materials	Conversion
Completed and transferred out	34,500	34,500
Ending work in process	8,800 (8,800*100%)	4,400 (8,800*50%)
Total Equivalent units	43,300	38,900

Calculation of total cost:-

Particulars	Materials	Conversion
Cost of beginning work in process	22,220	17,780
Add: Cost added during the period	125,000	184,500 (83,500+101,000)
Total Cost	147,220	202,280

Calculation of cost per equivalent units:-

Particulars	Materials	Conversion
Cost of beginning work in process	22,220	17,780
Add: Cost added during the period	125,000	184,500 (83,500+101,000)
Total Cost (a)	147,220	202,280
Equivalent units of production (b)	43,300	38,900
Cost per equivalent units (a/ b)	$3.40	$5.20

Calculation of cost of ending work in process:-

Particulars	Materials	Conversion Cost	Total
Equivalent units of production (a)	8,800	4,400
Cost per equivalent unit (b)	$3.40	$5.20
Cost of ending work in process (a*b)	$29,920	$22,880	$52,800

Calculation of cost of units transferred out -

Particulars	Materials	Conversion Cost	Total
Equivalent units of production (a)	34,500	34,500
Cost per equivalent unit (b)	$3.40	$5.20
Cost of units transferred out (a*b)	$117,300	$179,400	$296,700

14-

Date	Account Title and Explanation	Post.Ref.	Debit	Credit
	Finished goods		$296,700
	Work in process inventory- mixing			$296,700
	(To record transfer of finished goods inventory)

15-Reconciliation of work in process inventory accounts:-

Mixing Department

Cost Reconciliation

Particulars	Amount
Cost of beginning work in process inventory	$40,000
Cost added to production during the month	$309,500 ($125,000+$83,500+$101,000)
Total cost to be accounted for	$349,500

Reconciliation of work in process inventory accounts:-

Mixing Department

Cost Reconciliation

Particulars	Amount
Cost of ending work in process inventory	$52,800
Cost added to production during the month	$296,700
Total cost to be accounted for	$349,500