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 41,000 Completed and transferred to Finished Goods 134,065 86,500 104,000 Materials Direct labor Overhead June 30 balance The June 1 work in process inventory consisted of 5,700 units with $21,780 in materials cost and $19,220 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, 38,200 units were started into production. The June 30 work in process inventory consisted of 9,400 units that were 100% complete with respect to materials and 50% complete with respect to conversion. Foundational 4-4 4. Compute the equivalent units of production for materials. Equivalent units of production for materials

Answer 1

Clopack Company Requirement 1 Journal Enteries Trans. Particulars Work in Process-Mixing a/c To Raw Materials Inventory Dr. Debit in $ Credit in $ 134065 134065 Dr. 86500 Work in Process-Mixing a/c To Wages Payable 86500 Requirement 2 Journal Enteries Trans. Particulars Work in Process-Mixing a/c Dr. To Manufacturing Overhead Debit in $ Credit in $ 104000 104000 Requirement 3 The "units completed and transferred to finished goods" is computed as follows: Pounds Work in process, June 1 5700 Started into production during the month 38200 Total pounds in process 43900 Deduct work in process, June 30 -9400 Completed and transferred out during the month 34500

Requirement 4&5 Equivalent Units Materials Conversion 34500 34500 Units transferred out Work in process, ending: 9,400 units x 100% 9,400 units X 60% Equivalent units of production 9400 5640 40140 43900 Requirement 6 & 7 Cost of beginning work in process Cost added during the period Total cost $86,500 + $104,000 = $209,720 Materials Conversion 21780 19220 134065 190500 155845 209720 Requirement 8 & 9 The cost per equivalent unit for materials and conversion is computed as follows: Total cost (a) 155845 209720 Equivalent units of production (b) 43900 40140 Cost per equivalent unit (a) = (b) 3.55 5.22 Requirement 10 & 11 Total The cost of ending work in process inventory for materials and conversion is computed as follows: Materials Conversion Equivalent units of production (a) 94005640 Cost per equivalent unit (b) 3.55 5.22 Cost of ending work in process 33370 29467 inventory (a) (b) 62837 $64,500 is the June 30 balance in the Work in Process-Mixing Department T-account

Requirement 12 & 13 The cost of materials and conversion transferred to finished goods is computed as follows: Materials Conversion Total Units transferred out 34500 34500 Cost per equivalent unit (b) 3.55 5.22 Cost of units transferred to finished 122475 180253 302728 goods (a) (b) Requirement 14 The journal entry to record the transfer of costs from Work in Process to Finished Goods would be recorded as follows: Dr. 302728 Finished Goods a/c To Work in Process-Mixing 302728 Requirement 15 The total cost to be accounted for and the total cost accounted for is: Costs to be accounted for: Cost of beginning work in process inventory Costs added to production during the period Total cost to be accounted for 41000 324565 365565 Costs accounted for: Cost of ending work in process inventory Cost of units completed and transferred out Total cost accounted for 62837 302728 365565