Question

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	28,000	Completed and transferred to Finished Goods	?
Materials	120,000
Direct labor	79,500
Overhead	97,000
June 30 balance	?

The June 1 work in process inventory consisted of 5,000 units with $16,000 in materials cost and $12,000 in conversion cost. The June 1 work in process inventory was 100% complete with respect to materials and 50% complete with respect to conversion. During June, 37,500 units were started into production. The June 30 work in process inventory consisted of 8,000 units that were 100% complete with respect to materials and 40% complete with respect to conversion.

1. Prepare the journal entries to record the raw materials used in production and the direct labor cost incurred. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

2. 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.)

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

4. Compute the equivalent units of production for materials.

5. Compute the equivalent units of production for conversion.

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

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

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

9. What is the cost per equivalent unit for conversion? (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?

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?

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

Q1: Work in Process -Mixing Dr 120,000 Raw material Inventory Cr. 120,000 34500 units Finished 04. Equivalent unit of Material is

Clopack Weighted Average Method Equvivalent Units Material Conversion Costs Units Whole Units % Units Opening WIP Started Total Units to Account for Completed and tfd Closing WIP Total Units to Account for 5,000 42,500 34,500 8000 42,500 100 100 34500 8000 42,500 100 40 34500 3200 37,700 (answer5) Cost Information Costs to account for: Op.WIP Added during the period Total costs to account for EUP Cost Pe EUP ateriaConversion Cost 16,000 120,000 136,000 42,500 12,000 176,500 188,500 37,700 5.00 Total 28,000 296,500 324,500 (answer 6-136,000):(answer7-188,500) 3.2 8.2 (answer 8-3.2):(answer 9-5) Costs Account for: Completed and tfd CI.WIP Conversion Cost 172,500 16,000 188,500 Total 282,900 (answer 12 110400) 41,600(answer 12- 172500) 324,500 34,500 3.2 8,000 3.2 110,400 25,600 136,000 34,500 5 3,200 5 Total Cost to be accounted for Total Cost to be accounted for Op.WIP Added during the period Total costs to account for ateriaConversion Cost 16,000 120,000 136,000 12,000 176,500 188,500 Total 28,000 296,500 324,500 (answer 15 a)

Cost Reconciliation Schedule Costs Accounted for: Cost of units tfd.Out Closing WIP Material Conversion Cost Total costs of ending WIP 282,900 25,600 (answer 10) 41600 324,500 (answer 15-b) Answer 14- Finished Goods WIP 282,900 282,900