Question

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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  
45,000

Completed and transferred
to Finished Goods   ?
Materials   140,400        
Direct labor   89,500        
Overhead   107,000        
June 30 balance   ?        

The June 1 work in process inventory consisted of 6,000 units with $24,250 in materials cost and $20,750 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, 38,500 units were started into production. The June 30 work in process inventory consisted of 10,000 units that were 100% complete with respect to materials and 50% complete with respect to conversion.

Required:

8. What is the cost per equivalent unit for materials? (Round your answer to 2 decimal places.)

10. What is the cost of ending work in process inventory for materials? (Round your intermediate calculations to 2 places.)

11. What is the cost of ending work in process inventory for conversion? (Round your intermediate calculations to 2 places.)

12. What is the cost of materials transferred to finished goods? (Round your intermediate calculations to 2 places.)

13. What is the amount of conversion cost transferred to finished goods? (Round your intermediate calculations to 2 places.)

14. Prepare the journal entry to record the transfer of costs from Work in Process to Finished Goods. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

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

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

Answer 1

Please find below table useful to compute desired results: -

6 Total =C10+D10 11 12 Total 13 14 А 8 & 9 Cost per equivalent unit Materials Conversion Total Cost 1=24250+140400 =20750+89500+107000 Equivalent units of production =34500+10000*100% =34500+10000*50% Cost per equivalent unit =C3/C4 =D3/D4 10 & 11 Cost of ending work in process inventory Materials Conversion Equivalent units of production =10000*100% =10000*50% Cost per equivalent unit =C5 =D5 Cost of ending work in process inventory =C8*C9 =D8*D9 12 & 13 Cost of materials and conversion transferred to finished goods Materials Conversion Units transferred out =6000+38500-10000 =6000+38500-10000 Cost per equivalent unit =C5 Cost of units transferred to finished =C13*C14 =D13 D14 Journal Entry Transaction General Journal Debit Credit 14.. Finished goods =E15 Work in process - Mixing =C18 (to record the transfer of costs to finished goods) 15a Computation of Cost to be accounted for Cost of beginning WIP inventory 45000 Costs added to production during the period 336900 Total cost to be accounted for =C22+C23 15b Computation of cost accounted for Cost of ending WIP inventory 64500 Cost of units completed and transferred out 317400 Total cost accounted for =C26+C27 =D5 =C15+D15 16

End results would be as follows: -

6 A B 8 & 9 Cost per equivalent unit Materials Conversion Total Cost 164,650 217.250 Equivalent units of production 44,500 39,500 Cost per equivalent unit 3.70 5.50 10 & 12 Cost of ending work in process inventory Materials Conversion Total Equivalent units of production 10,000 5,000 Cost per equivalent unit 3.70 5.50 Cost of ending work in process inventory | 37,000 27,500 64,500 12 & 13 Cost of materials and conversion transferred to finished goods Materials Conversion Total Units transferred out 34,500 34,500 Cost per equivalent unit 370 5 50 | Cost of units transferred to finished 127,650 189.750 317.400 Journal Entry Transaction General Journal Debit Credit 14.. Finished goods 317,400 | Work in process - Mixing | 317.400 (to record the transfer of costs to finished goods) 15a Computation of Cost to be accounted for Cost of beginning WIP inventory 45,000 Costs added to production during the period | 336,900 Total cost to be accounted for 381,900 Computation of cost accounted for Cost of ending WIP inventory 64.500 Cost of units completed and transferred out | Total cost accounted for 381,900

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