Question

PO Required information The Foundational 15 [L04-1, LO4-2, L04-3, L04-4, LO4-5) The following information applies to the questo pued below Clopack Company manufactures one product that goes through one processing department called Moving All matenare introduced at the start of work in the Ming Department. The company uses the weighted average method of process costing Work in Process T-account for the Ming Department for unfollows forthcoming questions pertanto June Completed and transferred to the Goods The netw o cemento consisted of 5.000 units with 5.000 cost and 2000 in conversion cost. The sunetwork in process inventory was 100% complete with respect to materials and son complete with respect to conversion During June 17 500 units were started into production. The June 30 work in process inventory consisted of 3.000 units that were complete with respect to materials and complete with respect to conversion Foundational 4-13 13. What is the amount of conversion cost transferred to finished goods?

Answer 1

Amount of conversion cost transferred to finished goods

$172500

Explanation:

Units Completed and transferred to Finished Goods:
Work in process, June 1	5000
started in production during the Year	37500
Total units in process	42500
Deduct: work in process June, 30	(8000)
Completed and transfer during month	34500

Units transfer out	34500
Work in process ending (8000*40%)	3200
Equivalent units of production for conversion	37700

cost of beginning work in process	12000
Conversion cost added during the year (79500+97000)	176500
Total cost for conversion	$188500

Total Cost completed and transferred	$188500
Total units Completed and transferred	37700
Per unit conversion cost	$5.00 per unit

Units transferred out	34500
Cost per Equivalent unit	$5.00
amount of conversion cost transferred to finished goods	$172500