Question

Required information The Foundational 15 (LO4-1, LO4-2, LO4-3, L04-4, L04-5] [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 40,000 Completed and transferred to Finished Goods 128, 325 84,500 102,000 Materials Direct labor Overhead June 30 balance The June 1 work in process inventory consisted of 5,500 units with $21,750 in materials cost and $18,250 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, 38,000 units were started into production. The June 30 work in process inventory consisted of 9,000 units that were 100% complete with respect to materials and 50% complete with respect to conversion.

Answer 1

	Unit reconciliation:
	Units to account for:
	Beginning work in process inventory						5500
	Started						38000
	Total units to account for						43500
	Total units accounted for:
	Units started and completed during June				(43500-9000)		34500
	Ending work in process inventory						9000
	Total units accounted for						43500
	Equivalent units of production (EUP)-Weighted average method
							Units	% materials	EUP-Materials	% conversion	EUP-Conversion
	Units started and completed during June						34500	100%	34500	100%	34500
	Ending work in process inventory						9000	100%	9000	50%	4500
	Total units								43500		39000
	Cost per equivalent unit of production								Materials		Conversion
	Beginning work in process inventory								21750		18250
	Cost added during the year								128325		186500
											(84500+102000)
	Total cost								150075		204750
	/ Equivalent units of production								43500		39000
	Cost per equivalent unit of production								3.45		5.25
	Total costs accounted for:
							EUP	Cost per EUP	Total cost
	Cost of units completed and transferred :
	Direct materials						34500	3.45	119025
	Conversion						34500	5.25	181125
	Total costs transferred out					A			300150
	Costs of ending work in process
	Direct materials						9000	3.45	31050
	Conversion						4500	5.25	23625
	Total cost of ending work in process					B			54675
	Total costs accounted for					A+B			354825
	Completed and transferred to finished goods=$ 300150
	June 30 balance=$ 54675
13	Conversion cost transferred to finished goods=$ 181125 (Refer above)
	Journal entry:
	Transaction	General journal					Debit	Credit
	1	Finished goods					300150
		Work in process-Mixing department						300150
		(Transfer of cost from WIP to finished goods)
15-a.	Total cost to be accounted for:
	Work in process
					$
	June 1 balance				40000
	Materials				128325
	Direct labor				84500
	Overhead				102000
	Total cost to be accounted for				354825
15-b.	Total costs accounted for=$ 354825 (Refer above)