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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	32,000	Completed and transferred to Finished Goods	?
Materials	141,245
Direct labor	90,500
Overhead	108,000
June 30 balance	?

The June 1 work in process inventory consisted of 4,900 units with $17,380 in materials cost and $14,620 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, 37,400 units were started into production. The June 30 work in process inventory consisted of 7,800 units that were 100% complete with respect to materials and 50% complete with respect to conversion.

Find:

1. Prepare the journal entry to record the overhead cost applied to production. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

2. How many units were completed and transferred to finished goods during the period?

3. Compute the equivalent units of production for materials.

4. Compute the equivalent units of production for conversion.

5. What is the cost of beginning work in process inventory plus the cost added during the period for conversion?

Answer 1

1. Jounal Entry:

Account	Debit	Credit
Work in process - Mixing	108,000
Manufacturing Overhead		108,000
To record the overhead cost applied to production

2. Units completed and transferred to finished goods during the period: 34,500

Calculation

Work in process, June 1.	4,900
started in production during the year	37,400
Total units in process	42,300
Deducts work in process June, 30	(7,800)
Completed and transfer during the period	34,500

3. Equivalent units of production for materials: 42,300

Calculation

Units transferred out	34,500
Work in progress ending (7800*100% Completed)	7,800
Total Equivalent units of production for material	42,300

4. Equivalent units of production for conversion: 38,400

Calculation

Units transferred out	34,500
Work in progress ending (7800*50% Completed)	3,900
Total Equivalent units of production for material	38,400

5. Cost of beginning work in process inventory plus the cost added during the period for conversion: 213,120

Calculation:

	Cost
Cost of beginning work in process	14,620
Work in process Conversion cost added during the year	198,500
Total Cost	213,120

Note : Work in process Conversion cost added during the year = 90500+108000 = 198,500